Boral forecast yearly net profit results to be in the range of $100-110 million, after originally forecasting profits of $150-175 million earlier in the year.
It blamed bad weather in June, further delays in the resource sector and road projects, weaker property sales, an earlier than planned maintenance shutdown at Waurn Ponds cement works and continued weakness in the residential construction sector as reasons for the profit downgrade.
Boral chief executive officer Ross Batstone said he remained upbeat over the firm’s financial position despite recent events which had weakened Boral’s fourth-quarter trading performance.
“Boral’s underlying strategy remains sound,” he said.
“We will continue to focus on the reduction in borrowings through the divestment of non-core operations, tight management of capital expenditure and working capital.
“Based on our current strategy and plans, we do not expect there will be any need for additional equity raising in the short to medium term.”
This article first appeared in ILN's sister publication ConstructionIndustryNews.net.