Boral announce 2010 results

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BORAL Ltd have recently announced their results for the full year ended 30 June 2010. Sales of A$4.6 billion were reported for the full year, 6% lower than the prior year, predominantly reflecting the continued new home build declines in the USA and slow non-residential activity in Australia.

Likewise, the company’s earnings before interest and tax (EBIT) were A$252 million, 9% down, compared with A$276 million in 2009. However, cash generated from operations increased by 10% to A$459 million (2009: A$419 million) as a result of a $44 million improvement in working capital. Free cash flow also improved by $95 million to $324 million as a result of reduced capital expenditure at $180 million versus $240 million in the previous year.

Boral chief executive Mark Selway said: ‘I am pleased with the group’s progress during the financial year, especially in light of the difficult economic and market conditions we faced. I attribute much of the success to the actions initiated by our management team to improve productivity of our existing operations and focus our efforts at markets where Boral have a realistic ambition to lead

‘Profit after tax, excluding significant items, was similar to last year at A$132 million (2009: A$131 million) despite a 6% reduction on group turnover from A$4.9 billion in 2009 to $4.6 billion this financial year. Earnings per share on this basis amounted to 22.1 cents, which is about the same as for 2009.’