comments about adelaide brighton

From the Sydney Herald / AAP:


Adelaide Brighton's bright growth path

* David McIntyre
* May 16, 2008
*

ADELAIDE Brighton has forecast full-year profit growth of nearly 10 per cent as infrastructure and engineering projects spur demand for construction materials.

The rosy outlook for 9.7 per cent earnings growth sent shares in the cement and lime supplier more than 4 per cent higher. Adelaide Brighton closed up 15 cents, or 4.2 per cent, at $3.72, its highest level since April 7.

The managing director, Mark Chellew, said the company expected earnings this calendar year to improve to between $118 million and $125 million, against $113.9 million last year.

Mr Chellew told the company's annual general meeting yesterday that cement demand had continued to increase and growth in engineering and infrastructure was expected to offset any residential weakness.

The company has forecast volume increases of 5 per cent in cement and 3 per cent in lime this year, and cement prices were likely to rise by the inflation rate or above, Mr Chellew said.

Interest on debt would rise by $8 million because of higher borrowings and interest rates.

Adelaide Brighton had received approval from its three major banks to roll over $480 million of senior debt.