CSR, the building products group benefiting from the construction boom, now expects its full year profit to be higher than the previous financial year.
It says net profit before significant items will be toward the upper end of the analyst range of $128 million to $162 million.
The news sent CSR shares higher. A short time ago, the shares were up more than 11% to $3.24.
The company today reported a 32% increase in profit before significant items to $92.4 million for the half year to the end of September.
After significant items, including costs to complete the Boral CSR Bricks joint venture, profit was $77.6 million, up 13%.
Managing director Rob Sindel says the lift in half-year net profit was driven by a significant increase in earnings from building products and aluminium.
“Given recent building approvals and financing data, as well as feedback from our major customers, we anticipate robust demand for our key products will continue over the medium term, bolstered by improving activity in the alterations and additions market,” he says.
The company declared an unfranked interim dividend of 11.5 cents a share, a 35% increase.
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