Adelaide Brighton FY net profit rises 12.3%The concrete...

Adelaide Brighton FY net profit rises 12.3%

The concrete manufacturer and distributor said the result was driven by increased demand from the residential, engineering, infrastructure and resource sectors in Western Australia and Queensland.

Managing director Mark Chellew said the company’s increased profit reflected another strong year of demand with a 10.3% increase in revenues to $791.2 million.

“The profit increase of 12.3% also reflects the value of the company’s geographical spread, its exposure to the growing resources sector and improvements in operating performance,” he said today.

Mr Chellew noted that despite weakening construction activity in NSW due to the continued depressed state of the residential sector, the Hy-Tec division improved concrete margins through a combination of distribution efficiency and optimising mix designs.

“In addition, Hy-Tec’s NSW plants benefited from the commencement of internal supply of aggregates from the company’s Austen Quarry,” he said.

“This expansion into aggregates through Austen Quarry has become an important part of Adelaide Brighton’s downstream strategy.”

In the concrete products sector, Adelaide Brighton said C&M Brick recorded a significant improvement in earnings before interest and tax to $8.8 million despite weaker demand.

This result was based on a fundamental reduction in operating costs base following both the completion of the two-year plant upgrade programme and improved pricing, the company added.

Regarding the outlook for 2007, Mr Chellew said cement and lime demand and increased margins would underpin the company’s future profit growth.

“The 2007 result will also benefit from improved performance of C&M Brick on the basis of a projected recovery in the concrete product sector in the second half-year,” he concluded.