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Sydney, Nov 9, 2005 AEST (ABN Newswire) - Rinker Group Limited (ASX: RIN) today announced a net profit after tax (PAT) for the half year ended 30 September 2005 of US$366 million, up 52% on the previous corresponding period. Earnings per share 2 (EPS) rose 54% to 39.2 US cents.
Earnings per ADR 2 were US$1.96, also up 54%.
Other highlights:
-Trading revenue rose 20% to US$2,550 million -Earnings before interest, tax, depreciation and amortisation (EBITDA)3 was up 40% to US$670 million on improved profits from all business segments -Profit before finance and income tax expense (EBIT)3 was US$567 million, up 48%. -Operational EBIT, which excludes the US$31 million EBIT gain from the sale of the Buffalo Road quarry in Las Vegas in April, rose 40% to US$536 million. -Group EBITDA margins improved further to 26.3%, from 22.4% -Free cash flow 4 was US$327 million, up 50% Return on equity -(ROE)5 was 23.8%, up from 18.0% -Return on funds employed (ROFE)6 was 33.3%, up from 23.1%.
The improved result was due mainly to volume and price gains across almost all businesses - particularly in Florida and Arizona - together with US$23 million in operational improvement savings. These gains more than offset cost increases in fuel, power and raw materials. Directors doubled the interim dividend to 14 Australian cents per ordinary share. The ADR dividend is 70 Australian cents.
The dividend is 60% franked and payable on 12 December. Record date is 25 November. The unfranked portion of the dividend will be paid from Rinker's foreign dividend account - generally enabling the dividend to be free of Australian withholding tax in the hands of overseas shareholders.
"This increase in dividend aligns with our move towards an annual dividend payout ratio of around 35% of net profit," said Rinker Chief Executive Officer David Clarke. "It also reflects our confidence in the strength of our market positions and the long term performance of the group." Overall, he said the result was strong and the ongoing consistency in the performance of Rinker's operations was pleasing. "Earnings per share have grown 29.2% per annum compound over the past five years, while sales and EBITDA have grown 15% and 20% per annum compound respectively. This result continues that growth."
On capital management, Mr Clarke said Rinker continued with its on-market share buyback during the half year. Around A$304 million (US$230 million) has been invested so far this fiscal year (year end March 2006). Over 22 million shares, 2.3% of the share register, have been purchased, at an average price per share of A$13.82.
