Jamie Gray

Jamie Gray is a business reporter for the New Zealand Herald and APNZ wire agency

Boral says strong profits coming

Photo / Mark Mitchell
Photo / Mark Mitchell

Boral - Fletcher Building's main competitor in Australia - has forecast a far stronger first half profit after what it said was a stronger-than-expected performance in the December quarter.

The construction and building materials company now expects a net profit, before significant items, of about A$52 million for the first half to December 31, up from a previous forecast issued at the annual meeting on November 1 of A$35m.

"The improvement on Boral's previous guidance primarily reflects better than anticipated trading conditions in Australian Construction Materials underpinned by favourable weather conditions, together with early benefits from Boral's restructuring and rationalisation activities announced on January 16," the company said in a statement.

Earlier this month, Boral said it would restructure its operations, which it said would result in the loss of 1000 jobs. The company's interim result is due on February 13.

Australia is Fletcher Building's second biggest market after New Zealand.

Boral's shares last traded in Australia yesterday at A$4.88, unchanged, having earlier rallied on the back of the restructuring.

Fletcher Building's shares have been trading at around 20-month highs as rebuilding activity in Christchurch gains a head of steam. They closed yesterday at $9.34.

- APNZ

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