Building materials producer Boral has cut its full year profit guidance by $22 million because of the impact of heavy rain and weak housing activity on its operations.
Boral had forecast net profit before significant items in a range of $150 million to $175 million for the year to June 30.
But profit in the first quarter of calendar 2012 was $22 million below the company's expectations, and its full year guidance had been cut by the same amount, Boral said on Friday.
The downgraded forecast is now for a net profit before significant items of $128 million to $153 million.
"This reduction relates to continued heavy rain and lower residential housing activity on the east coast of Australia, particularly in Queensland and New South Wales," the company said in a statement.
Boral's United States and Asian results were broadly in line with expectations in the first quarter of calendar 2012, the company said.
"Weather and market conditions continue to be key variables in the run-up to the year end and a further update will be provided as the year develops," Boral said.
The company posts a net profit before significant items of $67 million in the first half of the 2011/12 financial year, a drop of 28 per cent from the previous corresponding period.
Delivering that result in February, chief executive Mark Selway said the company's second half result would only improve if heavy rain subsided.