Boral’s collapse clearly shows fallout from US disasters
The Boral construction products group’s fiscal 22 annual results clearly show the extent of the discount the company suffered during its failed foray into the American market.
The company said total FY22 revenue was 26.9% lower than the $5.3 billion in the prior year, at $3.908 billion.
It included revenue from now-discontinued operations of $952 million, suggesting the company has yet to drop before it hits bottom.
There was even little comfort in earnings from continuing operations, where revenue rose 1.1% to $2.956 billion.
Earnings from continuing operations before interest and taxes fell 38% to $112 million.
Earnings before interest and taxes were $112 million.
The company’s earnings were impacted by rising energy and transportation costs, Covid-19 shutdowns and rain in eastern states, resulting in a $58 million loss. dollars.
The haemorrhage comes from the rationalizations imposed on the company by its performance in the United States.
In April, the company decided to examine the future of its U.S. fly ash business and had previously agreed to sell its half stake in key building products company USG Boral for $1.43 billion. of dollars.
USG Boral was the company of the company with Gebr Knauf KG, based in Germany, which includes the major plasterboard businesses in Australia, New Zealand, Asia and the Middle East.
The company said in its annual report that during the year it completed the “strategic realignment” of Boral’s portfolio to focus on its core building materials business in Australia.
“However, our continued operations faced a number of challenges.”
The company said it is responding with pricing action, accelerated overhead reductions and energy cost mitigation activities.
During the year:
- He was awarded a $30 million federal government grant to use low-carbon cement production technology from Australian industrial technology company Calix
- Low-carbon concrete production penetration reached 19% of production
- And 58% of the company’s operational waste was diverted from landfills.
Late yesterday afternoon, shares of Boral rose 2.4% to $2.96.
Seven Group holds a 69% stake in Boral.
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