I noted sugar was 450 on 19th of June so almost a month later...

I noted sugar was 450 on 19th of June so almost a month later and it has held its ground and is now 476.

That's important when you consider CSR's latest statement.

http://www.egoli.com.au/egoli/egoliNewsViewsPage.asp?PageID=%7B1C1A2340-3C83-4A5F-B822-3E395C7E26EE%7D

CSR maintains 10% FY07 growth outlook
13/07/2006 By: Alex King
Australian diversified industrials group, CSR Limited (CSR) today advised shareholders that it expects to achieve a 10% increase in overall earnings before interest and tax (EBIT) over last year. The company said that as long as sugar prices remain reasonably strong there is no reason to change its forecast made in May.

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Managing director, Alec Brennan, said that when results for the year ending March 2006 were released back in May, the company expected to achieve overall earnings before interest and tax for the group around 10% above last year, excluding one-off items.

“A number of things have changed since that time, particularly the level of weakness in some building products markets,” he explained.

However, SHAW Stockbroking senior analyst Scott Marshall said that weakness in the company’s building operations outlook compared to that given at the end of the financial year is offset by higher sugar division profit outlook.

Mr Brennan advised that the company’s overall performance was also helped by solid returns from its property activities and a significant settlement in their long running insurance litigation.

CSR reported their net operating profit before significant items rose 17% to $250 million in the financial year ending March, although after recording one-off items its net profit fell 4.4% to $305 million.

“As long as sugar prices remain reasonably strong, we see no reason to change our guidance,” Mr Brennan said.

Looking ahead at CSR’s building products operations, the company expects earnings before tax to fall short of last year, excluding one-off costs.

“Turning to the outlook for this year, all east coast markets remain weak with the NSW market in particular being even weaker than we expected a few months ago. However, in the medium term we remain positive about the outlook for residential building,” Mr Brennan advised.

In its aluminium division, the group reported that more than 90% of its exposure to aluminium sales volume and currency had already been hedged for the current year ending March 2007.

“With production levelling off, we expect our earnings this year will be lower than last year,” Mr Brennan added.

Looking ahead at this season’s sugar operations, Mr Brennan expects the sugarcane crop to be down on last year as a result of wet and overcast growing conditions in Queensland, with the quantity of raw sugar produced also down marginally.

CSR says about 60% of the crop is now priced and the continuing strong prices since their results announcement in May should ensure that an average price in excess of $400 per tonne is achieved.

“Accordingly, we expect a significant improvement in sugar EBIT this year,” Mr Brennan said.

CSR chairman, Ian Blackburne today said that the company had invested over $219 million in growth last year.

“These investments should provide the base for further profit improvement in the years ahead,” he noted.

“The bottom line is that we expect this coming year to achieve an overall EBIT around 10% ahead of last year, excluding any significant items,” Mr Blackburne said.

Scott Marshall advised that CSR’s gearing remains low at 30% providing scope for acquisitions, significant growth investment or, more likely, capital return in the current year.

At 1135 AEST, shares in CSR were down 3c to $3.50.