By Rhiannon Hoyle
Australia’s Brickworks said Thursday it would increase its final dividend for a tenth consecutive year, despite recording a fall in annual profit and cautioning on slowing demand for its building products.
The company reported a net profit of 394.7 million Australian dollars (US$251 million) for the year through July, down 54% on the year-earlier period. Underlying profit fell by 32% to A$508.2 million, it said.
Directors declared a final dividend of 42 Australian cents a share, up from 41 cents a year ago. “We are proud of our long history of increasing dividends,” which reflects the company’s strong fiscal position, Brickworks said.
Revenue rose by nearly 8% to A$1.18 billion, helped by income from its property joint-venture trusts with Goodman Group.
Brickworks said the development pipeline for its property trusts business is strong, projecting a significant increase in rental income over the years ahead.
In the shorter term, the company forecast a decline in building products demand for the months ahead. “Order intake is now softening,” although margins should be helped by price increases and recent plant rationalization, it said.
Write to Rhiannon Hoyle at [email protected]
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