re: that 2007 forecast growth seems very low to ju your a fool...
http://afr.com/articles/2006/04/06/1143916626831.html
US boosts Rinker to $1bn year
Apr 06 10:04
AAP
Heavy building materials company Rinker Group has lifted its profit expectations for 2005/06 after a strong performance in its key American markets of Florida and Arizona.
Rinker now anticipates net profit of around $US740 million ($1.01 billion) for the year ending March 31, 2006, which would be up by about 50 per cent on the previous year.
Chief executive David Clarke said on Wednesday the continuing strong performance of Rinker's major markets - particularly Florida, Arizona and Nevada - over the fourth quarter was driving the profit improvement.
"Ongoing population growth, strong employment and economic expansion, together with healthy state finances, are behind the continuing growth in construction activity," Mr Clarke said in a statement.
"These are long-term trends in our key markets which support strong activity levels across the residential, non-residential and infrastructure sectors."
For the United States business, Rinker Materials, earnings before interest and tax (EBIT) was expected to be up by about 54 per cent in the final quarter just ended, while the Australian business, Readymix, had traded in line with the previous corresponding quarter. Mr Clarke said the higher volumes and prices in most markets across the US during the year, as well as cost savings in the group, helped override significant cost increases in fuel, freight and raw materials.
Rinker also had a positive outlook for the current financial year with construction activity remaining at high levels in both the US and Australia, and forecasts for the current fiscal year "slightly ahead" of last year.
"It is very early in our current financial year, but in the US we continue to see substantial housing backlogs reported by many of our customers, together with improving activity levels in the non-residential sector - particularly in retail, tourism and education - and higher infrastructure lettings in almost every state," Mr Clarke said.
"In Australia, housing continues to weaken amid increasing indications that it may be bottoming, while commercial and infrastructure continue at strong levels."
Rinker expects its earnings per share to be around US80¢ for 2005/06 and to be in the range of US86¢ to US92¢ in the current financial year, an increase of 13 to 21 per cent.
The guidance assumed there would be no significant changes as a result of recent litigation brought by environmentalists in Florida challenging mining permits in the Lake Belt District, where aggregates were sourced.
Rinker's upgraded guidance followed a raft of recent reports from market analysts suggesting the group's prospects were strong.
RIN
rinker group limited
