Building materials maker Boral says demand for its products was steady in the first few months of the financial year as housing construction picks up in NSW and Western Australia.
Strengthening residential construction demand in those states had offset a modest decline in Victoria and a stagnant market in Queensland, Boral said.
"In the first quarter of this financial year we have seen broadly steady overall market demand levels in Australia," chief executive Mike Kane told the company's annual general meeting.
But the non-residential construction sector was expected to be weak as infrastructure demand for roads and highways fell in Queensland and Victoria.
"We expect overall softer demand levels to continue in non-residential and infrastructure markets with no meaningful recovery in detached housing expected this financial year," Mr Kane said.
Boral continued to benefit from the Curtis Island LNG projects in Queensland and favourable weather conditions on the east coast, he said.
The company still expects the 2013/14 financial year performance of its construction materials and cement business will not to exceed the previous year's earnings.
Beyond 2013/14, Boral believes it is well positioned to continue supplying major projects such as the Wheatstone LNG project in WA and the Barangaroo development in Sydney.Boral shares added eight cents, or 1.65 per cent, to $4.94.