- CSR’s net profit after tax (before significant items) was $94 million, down 31%, for the half year ended 30 September 2018.
- Statutory net profit after tax was down 77% to $26.8 million, including $67.2 million in significant items.
- Fully franked interim dividend of 13 cents a share.
Shares in CSR fell hard after the building products group posted a 77% fall in half year profits to $26.8 million.
A short time ago, the shares were down 8% to $3.30.
The result included $67.2 million in significant items, mainly the non-cash impairment of the carrying value of the Viridian glass business unit.
Net profit after tax was down 31% to $94.0 million before significant items.
Managing Director Rob Sindel says the company has in the last few years capitalised on the strength in the housing market and invested in operations to ensure cost structures adapt to changing market conditions.
“We are also developing the next phase of growth initiatives,” he says.
More than 10% of revenue is from new products and services that did not exist within CSR five years ago.
“Despite moderation in demand from both multi-res and detached housing approvals, particularly in NSW, fundamentals for housing remain reasonably strong supported by population growth and a stable environment for employment and interest rates,” he says.
“Demand for CSR’s products will also be bolstered by forecast growth in the non-residential markets.
“CSR has a growing position in this market which represents about one quarter of revenue with a number of major projects in the pipeline.”
The company declared a full franked interim dividend of 13 cents a share.
The company expects group net profit after tax (before significant items) for 2019 will be within the current range of analysts’ forecasts of $180 million to $205 million.