Home building slump to hit Adelaide Brighton profit

Company News

by Rachael Jones

Construction company Adelaide Brighton (ASX:ABC) reports that it expects underlying net profit after tax , excluding property, for the year ending 31 December 2019 to be 10 – 15 per cent lower than the prior year of $190.1 million.

One main driver for the decline in expected earnings include further softening of demand for construction materials in the residential market.

The company have also seen increased competition from cement imports, increased competitive pressures in Queensland and higher costs of key raw materials compared to the prior year.

Chief Executive, Nick Miller says they will continue to focus on operational improvement and cost efficiency to mitigate the impact on earnings.

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