Boral report strong performance across all divisions
Company delivers on transformation strategy and reports strong earnings growth in FY2017
BORAL Ltd have reported a 28% increase in underlying profit after tax, to A$343 million, for the year ended 30 June 2017, with all three divisions – Boral Australia, USG Boral and Boral North America – contributing to the improvement. Net profit after tax was 16% ahead of the prior year at A$297 million.
Sales revenue of A$4.4 billion was up 2% on the prior year, including eight weeks of revenue from the Headwaters acquisition as well as underlying business growth. Excluding the impact of lower reported revenues from US bricks following the formation of the Meridian Brick joint venture in the US, revenue increased by 8%.
Earnings before interest and tax (EBIT) increased by 16% to A$460 million, underpinned by growth in all three divisions.
Boral’s chief executive officer and managing director, Mike Kane (pictured), said the company had continued to deliver strong earnings growth during the financial year while, at the same time, undergoing a major strategic transformation of the business following the acquisition of Headwaters.
‘The increase in EBIT reflects Boral’s high-performing business in Australia, supplying continued strong east-coast residential markets as well as growing infrastructure volumes linked to major public sector spending, especially in New South Wales, where we have a strong market position,’ he commented.
‘There has also been strong performance from our growing USG Boral joint venture, with Australian and Korean businesses doing particularly well. And in North America, the US$2.6 billion acquisition of Headwaters has transformed Boral into a more global and more resilient building products and construction materials group.
‘We have delivered a substantial increase in EBIT from Boral North America, underpinned by the completion of the Headwaters acquisition. Integration is tracking well and in line with our expectations, and we expect to deliver significant earnings growth in financial year 2018, with a full year contribution from Headwaters and synergy delivery, as well as continued steady market growth.’