More cost cuts by building companies tipped by analysts

Analysts predict that companies manufacturing building materials will take cost cutting measures when their half-year results are announced next month.

Analysts predict that companies manufacturing building materials will take cost cutting measures when their half-year results are announced next month.

Emily Behncke of Deutsche Bank says that the current construction outlook in Australia wasn’t a good sign.

“We do expect cost cutting to be a strong thematic," she told The Australian.

As reported in Manufacturers’ Monthly and elsewhere, Boral announced 700 redundancies earlier this month after a 100-day review of its business.

Boral will be the first building materials company to give its half-year results, with an announcement on February 13.

Behncke said she was uncertain how deep Fletcher Building’s cuts would be.