Building and construction materials manufacturer Boral Ltd
(ASX:BLD) has reported 42 per cent fall in full year net profit impacted by a sharp downturn in market activity in the U.S. and Australia.
Net profit after tax for the year to June 30 came to $142 million, down from $243 million the year before.
Boral’s underlying earnings before interest, tax, depreciation and amortization declined 22 per cent to $539 million due to significantly weaker housing markets in the U.S. and Australia.
Sales revenue fell 6 per cent to $4.9 billion, reflecting a 5 per cent decline in Australian revenues and a 19 per cent decline in revenues from the U.S. business; however revenue from Asia rose 15 per cent.
CEO Rod Pearse says that the impact of the global recession created unprecedented market challenges in fiscal 2009, which intensified in the second half of the year.
Mr Pearse says current market conditions are expected to broadly continue during the first half of fiscal 2010, however second half levels are expected to be stronger than in the December 2009 half but says it is difficult to forecast at this time.
Boralamortisation declared a final dividend of 5.5 cents a share. Boral’s profits have been decreasing over the past four years.
