SYDNEY - [AAP] Building materials supplier Boral (ASX: BLD) has lifted its first-half profit but the growth was capped by significant items including $41 million in integration costs for its US acquisition.

Net profit for the six months to December was up 12.8 per cent to $173 million.

Excluding the significant items, however, profit for the half-year jumped 43.6 per cent to $213.9 million as the group benefited from continuing strong growth at the Australian operations as well as the acquisition of building products supplier Headwaters last year.

Revenue for the period also rose, by 40.3 per cent to $2.94 billion.

Chief executive Mike Kane says the results confirm that Boral's transformation strategy is on track.

"It is very clear that we are seeing synchronised global growth benefiting all three divisions," he said referring to the company's segments Boral Australia, USG Boral and Boral North America.

Earnings in the company's largest division, Boral Australia, rose 12 per cent to $294 million, while the USG Boral joint venture fell one per cent to $149 million as a result of one-off costs.

The newly formed North America division, which includes Boral USA as well as Headwaters, delivered earnings of $184 million compared to just $41 million a year ago.

The division is expected to see significant EBIT growth for the full year to reflect the acquisition, synergy benefits and underlying market growth, with most of the gains skewed to the second half of the year, Mr Kane said.

Profits from USG Boral are expected to grow at a mid-single digit rate in FY2018, while Boral Australia is expected to deliver high single-digit earnings growth in the full year.

Strong growth in infrastructure and non-residential activity is expected to underpin volume growth in FY2018, Mr Kane said.

Boral will pay a 50-per cent franked interim dividend of 12.5 cents per share, up from a fully-franked 12 cents a year ago.

BORAL'S HALF-YEAR PROFIT RISES

* Net profit up 13pc to $173m

* Revenue up 40pc to $2.9bn

* Interim 50pc franked dividend 12.5 cents a share, vs 12cps fully franked

 

AAP logo image

© [2017] Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

This service is published for general information purposes only without assuming a duty of care. AAP is not in the business of providing financial product advice (whether personal or general advice), and gives no warranty, guarantee or other representation about the accuracy of the information or images contained in this service. AAP is not liable for errors, omissions in, delays or interruptions to or cessation of the services through negligence or otherwise. The globe symbol and "AAP" are registered trademarks.