Shares in CSR fell hard after the building products group posted its annual results, saying the residential building market may have peaked.
A short time ago, the shares were down 11% to $4.58.
Net profit for the 12 months to March was up 11% to $183.8 million. Revenue was up 7% to $2.5 billion
CSR managing director Rob Sindel says the strength of construction markets in Australia has led to building product earnings more than doubling over the past five years.
“While residential construction markets appear to have peaked from recent record levels of activity, construction currently underway will support demand for CSR’s products in the year ahead,” says Sindel.
The company declared an 11% increase in the full-year dividend to 26 cents, franked at 50%.
For the year ahead, the company says earnings will be supported by reasonably steady demand from detached housing and high-rise construction on the east coast.
“In summary, CSR continues its strategy to invest in customer service and digital solutions while growing its position in lightweight building and façade systems,” says Sindel.
“By strengthening our core businesses and investing in new market segments, we are more resilient to changes in the building cycle.
“Overall earnings for the CSR Group will be bolstered by higher property profits and a significant increase in hedging in Aluminium reducing future earnings volatility.”