Brickworks Limited (ASX:BKW) Delivers a Steady Result and Increased Dividend
Sydney, Sep 23, 2010 AEST (ABN Newswire) - Brickworks Limited (
ASX:BKW) (PINK:BRKWF) today announced a steady financial result with Normalised Net Profit After Tax (NPAT) of AU$110.2 million for the full year ended 31 July 2010 compared to AU$113.7 million for last year. After non-regular items, Brickworks' Headline NPAT was AU$138.8 million, down 54.5% from AU$305.2 million recorded for the previous corresponding year.
Directors have declared a final dividend of 27.0 cents fully franked, taking the full year dividend to 40.0 cents fully franked; an increase of 1.0 cent on the previous corresponding year. The record date for the ordinary dividend will be 23 November 2010, with payment being made on 1 December 2010.
"It is a testament to our business that we have been able to raise our dividend again this year. Our focus on diversification, thereby spreading the risk across the business, has once again paid off for our shareholders," Mr Robert Millner, Chairman of Brickworks said.
-------------------------------------------FULL YEAR 2009 2010 Variance% Revenue ($M) 593.5 656.5 10.6EBIT Normalised ($M) 165.8 150.5 (9.2)NPAT Normalised ($M) 113.7 110.2 (3.1)EPS Normalised (cents) 85.6 76.7 (10.4)Final Div (cents) 26.5 27.0 1.9-------------------------------------------
Building Products Group
The Building Products Group achieved earnings before interest and taxes (EBIT) of AU$53.4 million for the year ended 31 July 2010, up 44.3% from the AU$37.0 million recorded in the previous corresponding year.
Recent acquisitions in the precast concrete panel industry, including Girotto and Gocrete for AU$13.8 million last month and Sasso Precast Concrete for AU$35.3 million in March - now all branded Austral Precast - have diversified the Building Products Group offering and increased Brickworks' exposure to the commercial and industrial construction markets.
Land and Development
Land and Development recorded an EBIT of AU$28.4 million for the year ended 31 July 2010, down 30.0% from AU$40.6 million from last year, largely due to depressed conditions in the industrial property market.
Property sales contributed an EBIT of AU$17.9 million for the year, and included two lots in the M7 Business Hub, the final stages of the Eastwood site in New South Wales and the Oxley site in Queensland,.
Investments
Investment EBIT for the year ended 31 July 2010 was $76.5 million, a decrease of 19.8% on the AU$95.4 million delivered last year. The market value of Brickworks' 42.85% shareholding in Washington H. Soul Pattinson increased by AU$204 million to v$1.329 billion for the year ended 31 July 2010.
Brickworks' net debt was reduced by AU$155.4 million to AU$226.6 million at 31 July 2010, which improved the net debt to capital employed to 12.1% (21.8% net debt to capital was recorded for the previous corresponding year). Total Interest Bearing Debt also decreased to $300 million reducing the gearing (debt to equity) to 18.2% as at 31 July 2010 (29.2% gearing was recorded for the previous year).
The reduction in Total Interest Bearing Debt was achieved with additional funding of AU$173.9 million raised from the September 2009 Share Purchase Plan along with property sales proceeds of AU$58.6 million.
Outlook
The outlook for Building Products in the long term is positive, however in the short term demand is softening as the government stimulus work subsides. The markets in the resource states of Queensland and Western Australia are the greatest concern due to high rental vacancy rates and poor affordability. The often touted housing shortage is in the main a shortage in Sydney, held back by a supply of affordable land. Continued demand from investors and upgraders is essential to a sustained recovery in dwelling construction.
Industrial and commercial construction markets appear to be running a similar path to the housing markets in each state.
Brickworks expects to post another solid result in the coming year, supported by the company's diversified model.
Results briefing
Robert Millner, Chairman and Lindsay Partridge, Managing Director will be presenting the Brickworks results with a Q&A session afterwards today at 12.15pm, for 12.30pm start, at the Citigroup Centre, Level 39, 2 Park Street, Sydney.
BRICKWORKS LIMITED (ASX CODE: BKW) www.brickworks.com.au
For the full Annual Report Please see the following link:
http://www.abnnewswire.net/media/en/docs/63775-Brickworks_FY10-ASX.pdf
About Brickworks Limited
Brickworks Limited (ASX:BKW) is one of the world's largest and most diverse building material manufacturers. Our company has built an enduring reputation with our customers – we are loved for our innovation, professionalism and ever-dependable products and services.
As Brickworks Building Products expands globally, we continually foster and advance our products and our brands. We continue to lead the way through design, style, innovation, sustainability, and collaboration.
Our commitment is to inspire, support, create and build better environments and places for our customers and communities; all integral to our clear vision to become the best building products company.
With a broad product portfolio and manufacturing and sales facilities across Australia & North America, Brickworks is uniquely placed to service the demands of the building industry.
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