Sunny days for Boral

BUILDING materials supplier Boral says earnings at its Australian business should grow more than it previously expected for the year to next June.

But Boral’s newly formed North America division has taken a hit of between $US5 million ($6.5 million) and $US10 million because of two major hurricanes there.

Boral managing director Mike Kane said the company still expected significant earnings growth this year from that division due to the first fullyear contribution from Headwaters, the US building products maker it bought last financial year.

It expected to reap $US30 million to $US35 million in acquisition benefits, Mr Kane said.

“So, across the group, we have seen some ups and some downs in the first quarter, which is not unusual,” Mr Kane told shareholders at Boral’s annual meeting in Sydney yesterday.

“Weather can be our friend or our enemy in the short term.

“Looking through these short-term impacts though, the future is extremely bright for Boral.”

Amid strong construction activity in New South Wales and Queensland, the group says earnings at its Australian business should clock in stronger than previously expected.

Mr Kane said that at its fullyear results announcement in August, Boral expected fullyear earnings from that business to be broadly similar to those of the past financial year.

However, in the first quarter this financial year, Boral had benefited from an unprecedented period of continuous, uninterrupted construction activity in NSW and Queensland thanks to exceptional dry weather, he said.