CSR profits down by half for half year

Building products manufacturer CSR has reported a 50 per cent fall in profits, with its glass making business and a weak housing sector in particular dragging on results.

The company’s net profit for the half-year to September 30 was down to $17.5 million, compared to $34.9 million in the same period last year.

Viridian – CSR’s glass making business – posted a $11.7 million loss, and $2.9 million in costs for restructuring CSR’s aluminium joint venture were both negatives, as was the weakness in the housing sector.

''The key external drivers that impact CSR's profitability were all materially worse this period,'' said managing director Rob Sindel to AAP.

Sindel predicted that an improvement in housing market conditions would persist until mid-2013.

"However, a combination of falling interest rates and improved state government stimulus programs in New South Wales, Queensland and South Australia should enable a moderate recovery in residential activity in the next financial year," he said, in remarks reported by Business Spectator.

Despite the drop in earnings, shares in CSR were up 7 per cent yesterday, according to the Herald Sun.