Housing market gloom shadows CSR
An expected fall within the number of new house begins to around 135,000 for that current year, when compared with about 148,000 around to March 31, 2012, had affected interest in CSR’s building products, including the Bradford, Monier and Gyprock brands, and it is Viridian glass products.
Chairman Jeremy Sutcliffe said the core Australian commercial and residential construction markets were under extreme pressure, despite strong underlying interest in housing.
“And, while we see causes of optimism in the medium term when sentiment improves, both sectors will probably remain challenging for the short term,” he told shareholders.
Mr Sutcliffe said the largest impact on CSR’s share price, that has fallen 56 percent in the past 12 months to 123.5 cents, have been falling Australian dollar aluminium prices.
The organization said analyst forecasts for earnings before interest and tax within the aluminium division ranged from $73 million to some $3 million loss, using the consensus median at $45 million.
However a noticable difference of $200 in the current Australian dollar spot price for aluminium could be needed to reach the consensus figure.
Mr Sutcliffe criticised the government government’s carbon tax as damaging to Australian manufacturing.
“At the absolute minimum, the price of $23 per tonne introduced on 1 July ought to be urgently revisited to reflect the difficulties our economy faces,” he explained.
CSR also expects full-year EBIT because of its property division to be “at the reduced end” of a $15m-$25m range.
CSR posted a $76.3 million profit for that year to March 31, 2012, down 85 percent from $503.4 million the year before.
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