Building products manufacturer Brickworks Ltd
(ASX:BKW) has posted a 12.1% rise in first half profit to $57 million and also expects a solid full-year result.
Chairman Robert Millner says the result highlights increased earnings derived from the building products and property divisions and lower interest payments.
The building products division recorded earnings before interest and tax of $21.8 million for the half year, due to increased volumes and higher average selling prices.
Managing Director Lindsay Partridge says the company undertook steps to improve the business and strengthen its financial position throughout the economic downturn.
It raised $421.9 million through a successful share purchase plan, the sale and leaseback of the Wollert plant and the sale of surplus assets.
As a result, debt to capital employed was reduced to 10.8%.
Looking ahead, the company says it expects its full-year result to be solid due to lower interest expense and the improving performance of its building products division.
In February, Brickworks acquired the assets of Brick & Block Company for $13.5 million and it completed the sale of the final stage of the Eastwood site in Sydney to AV Jennings this month for $17.5 million.
The board has declared an increased interim dividend of 13 cents per share, payable on May 20.
For the 12 months to July 30, 2009, Brickworks reported a profit of $305.2 million.
