CSR delivers good news, shares go up

CSR has more than doubled its first-half profit to $68.8 million, despite weakness across the construction market.

The result helped push the company’s share price to its highest mark in more than a year yesterday, even after softness in the residential construction market sapped its core building products unit, where earnings slipped 18 per cent to $95.9 million in the six months to September 30.

CSR shares closed yesterday up 4.6 per cent at $4.33.

CSR’s total revenue from continuing operations fell 4.0 per cent to $1.15 billion, in what was managing director Julie Coates’ first result announcement since taking over from Rob Sindel last month.

“The business has performed solidly in light of challenging market conditions in the residential construction sector,” Ms Coates said. “While in the short term we are focused on managing the business prudently, we remain committed to continuing to diversify our earnings across both residential and commercial construction.”

CSR’s profit was up from $26.8 million a year ago, when the troubled Viridian business weighed on the balance sheet thanks to $76 million in impairments. Viridian was sold to Crescent Capital Partners for $155 million in January.

Ms Coates said seasonality would likely weaken the company’s second half, though she expects a building product boost from people cashing in on low interest rates and increased credit availability.