The West

Adelaide Brighton hits at earnings rise
Adelaide Brighton hints at earnings rise.

Building materials provider Adelaide Brighton has lifted its first half net profit by nearly 10 per cent and flagged a possible modest rise in annual earnings.

The company, whose products include lime and cement, lifted net profit to $67.5 million in the half year to June 30, from $61.4 million in the previous corresponding period.

Revenue rose 8.3 per cent to $550.3 million, from $507.9 million.

Managing director Mark Chellew on Thursday flagged the company's annual net profit could rise by up to 4.4 per cent, depending on the timing of cement sales and if market conditions were sustained in the second half.

He described the first half result as solid given the difficult market conditions.

Demand from the mining sector had improved, offsetting the weak activity in the residential and commercial markets.

Looking ahead, Mr Chellew said he expected the carbon tax would hit the company's annual profit by about $2.7 million.

However, the company still expected a modest improvement on the $148.4 million net profit it recorded for calendar 2011, he said.

"Subject to the timing of cement sales to major projects and if market conditions are sustained during the second half of 2012, Adelaide Brighton expects a net profit after tax in the range of $145 to $155 million for the full 12-month period to 31 December 2012," he said in a statement.

The company maintained its interim fully-franked dividend at 7.5 cents a share.

The West Australian

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