NewsBoral expects H2 profits well above H1 11:35, Friday, 21...

News
Boral expects H2 profits well above H1

11:35, Friday, 21 October 2005

Sydney - Friday - October 21: (RWE Aust Business News) - Boral
Ltd (ASX:BLD) expects lower volumes in Australian dwelling construction
will be offset by the infrastructure activity in the year ahead.
And second half year profits should be significantly above the
first half.
Addressing the annual general meeting managing director Rod
Pearse said dwelling starts will be around 140,000-145,000 this year.
"This market correction will result in higher production costs
and some margin reduction in our east coast building products businesses
as we reduce production levels to mitigate the growth of inventory," he
said.
"We anticipate however, that the lower volumes supplied by our
construction materials businesses to the dwellings market will be more
than offset by the lift in Australian non-dwellings and infrastructure
activity that is coming through."
He said earnings in the USA should improve through volume and
price gains while Asian earnings should be comparable to last year.
"We anticipate that earnings from our quarry end use activities
will lift to around $40 million to $45 million in 2005/06 but we expect
that some 85pc of QEU earnings will occur in the second half," he said.
"Benefits from growth projects are also expected to contribute
more strongly in the second half of the year.
"Overall, we anticipate that profits in the second half of the
year will be significantly above first half profits.
"The first quarter of the year has progressed in line with
expectation ... whilst it is still early days. we expect Boral's reported
profits after tax, as measured under international financial reporting
standards, to be within a range of $355 million to $395 million."
Boral shares were up 15c to $7.35.