Rock-solid earnings

BORAL has flagged a rise in full-year earnings on the back of a wave of infrastructure projects in Australia and growth in its US operations.

The building materials supplier yesterday revealed its net profit jumped 13 per cent in the six months to December, compared with the same period a year earlier, to $173 million.

But growth was capped by significant items, including $41 million in costs to integrate the Headwaters business it bought in the US under a deal it struck late in 2016.

The result disappointed the market, sending Boral shares down 15c or 2 per cent.

Excluding significant items, profit was up 44 per cent to $213.9 million, aided by the expansion of its US operations, resilience in the Australian housing construction market and new spending on roads, bridges and dams. CEO Mike Kane said he expected further growth in its three divisions – Boral Australia, Boral North America and the USG Boral joint venture.