Operating earnings, that is earnings before interest and tax, were $340 million, compared to $335 million in the previous corresponding period. The increased earnings are due to the ongoing benefits of operational improvements and some small acquisitions, despite softer demand.
The interim dividend of 22 cents per share is an increase over the previous interim dividend of 19 cents per share and is the tenth consecutive dividend increase by the company. Total shareholder return was 24 percent for the 6 month period.
While the company’s overall earnings increased, the divisional earnings were more varied given the spread and range of the markets involved. Building Products and Infrastructure were down on the operating earnings in the previous corresponding period, but were more than offset by the increased earnings in Distribution, Laminates & Panels, and Steel.
The Chief Executive Officer, Mr Jonathan Ling, said “maintaining the company’s earnings reliability while evaluating a number of growth opportunities, and establishing the new senior management team, is very pleasing. Excluding any impact from the insurance recoveries arising from the Taupo MDF plant fire and the Pacific Steel plant failure, the company continues to be comfortable with the consensus of analysts’ forecasts available at the time of last year’s annual shareholders meeting, which is for its June 2007 net earnings to be around $388 million. This increase on last year’s earnings is a pleasing result given the current state of the building materials markets.”
Key Points
- Group net earnings up 2 percent to $193 million.
- Operating earnings up 1 percent to $340 million.
- Cashflow from operations was $227 million.
- Earnings per share for the period increased from 40.9 cents to 41.1 cents.
- Interim dividend of 22 cents per share with full New Zealand tax credits is the tenth consecutive increase.
Acquisition opportunities being evaluated.
Contact:
Jonathan Ling
Chief Executive Officer
Phone: +64 9 525 9169
Fax: +61 9 525 9032
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