Brickworks optimistic despite FY profit drop

Brickworks has announced a 24 per cent drop net profit but is expecting strong growth in 2016 as construction continues to grow in major cities.

The company said in a statement that statutory net profit for the 12 months to July 31 was $78.1 million. The drop was affected by non-cash impairments in its Austral Precast and Auswest Timber units and in Washington Soul Pattinson subsidiaries New Hope Corporation and CopperChem.

Underlying Net Profit After Tax (NPAT) before significant items was $120.3 million, up 18.8 per cent from the prior year the previous year.

Underlying earnings per share were 81.1 cents, up 18.5% from 68.4 cents for the prior year.

Directors have declared a fully franked final dividend of 30 cents per share, taking the full year dividend to 45 cents fully franked, an increase of 3 cents, or 7.1% on the prior year. The record date for the final dividend will be 5 November 2015, with payment to be made on 25 November 2015.

Brickworks Managing Director Lindsay Partridge said: “The outlook for Building Products is very positive. With a long pipeline of work and price rises successfully implemented in our major markets, earnings are expected to improve in 2016.”

“In Austral Bricks, the current order bank along the east coast is extremely strong. Home builders in the major markets of Sydney and Melbourne are reporting strong demand and work in hand extending by up to one year. However government’s across Australia need to do more to overcome land title bottlenecks, delays in building approvals and trade shortages.”