Directors today announced the group’s unaudited interim results for the six months ended 31 December 2007. Net earnings were $235 million, compared to $193 million in the previous corresponding period. This is an increase in earnings per share from 41 cents to 47 cents.
Operating earnings (earnings before interest and tax) and after Formica restructuring costs of $16 million were $394 million, compared to $340 million in the previous corresponding period. The increased earnings are due to the Formica acquisition, ongoing operational improvements and some small acquisitions.
The interim dividend of 24 cents per share is an increase of 2 cents per share over the previous interim dividend and is the twelfth consecutive dividend increase by the company. Total shareholder return was negative 4 percent for the half-year, influenced heavily by the uncertainty in equity markets internationally.
The 22 percent increase in net earnings reflects strong operating performance, with all divisions recording higher earnings than in the previous corresponding period. Laminates & Panels’ earnings increased on a like-for-like basis, and also benefited from the acquisition of Formica Corporation on 2 July 2007.
The Chief Executive Officer, Mr Jonathan Ling, said: “This is a pleasing performance which reflects the group’s ability to deal with variable and sometimes difficult operating conditions. Across our businesses, commercial and infrastructure markets are still strong, which is best exemplified in New Zealand with a construction backlog of over $1 billion. While there is some weakness in residential markets and provided there is no significant change in economic conditions, we remain comfortable with our earnings prospects for this financial year”.
Key Points
- Group net earnings up 22 percent to $235 million
- Operating earnings up 16 percent to $394 million
- Cashflow from operations up from $227 million to $245 million
- Earnings per share up from 41 cents to 47 cents
- Interim dividend of 24 cents per share with full New Zealand tax credits – the 12th consecutive dividend increase
- Acquisition opportunities being evaluated
Contact:
Jonathan Ling
Chief Executive Officer
Phone: +64 9 525 9169
Fax: +61 9 525 9032
Ends