Boral's $1.14b loss prompts review
Building supplies provider Boral has slumped to a full-year loss of $1.14 billion after it wrote down the value of assets, mostly in its US business.
The statutory result follows the summer bushfires, floods and COVID-19 pandemic suspending production, lowering production volumes and raising costs.
The company had to close or limit plant operations in the US and Asia.
It had write-downs of $1.32 billion, mainly due to falling housing activity. Operations in the US, where the pandemic has hit hardest, accounted for most of this write-down.
Ratings agency S&P Global said the earnings downgrade was the latest in a series since Boral bought US building products maker Headwaters in 2017.
Chief executive Zlatko Todorcevski, who started in the role last month, is reviewing operations and says he expects to announce the outcomes in late October.
This will be about the time of the annual general meeting.
He said Boral was experiencing less disruption in the current financial year, although uncertainty remained.
This uncertainty included how long stage four restrictions would remain in Melbourne to slow the virus. Concrete volumes in Boral's Melbourne business were down 20 per cent on the same prior period.
In the US, demand was improving but sales were still down year on year.
Shareholders will not receive a final dividend.
They received a final dividend of 13.5 cents per share in 2019 after Boral posted a $251 million profit.
Shares were higher by 1.69 per cent to $3.90 at 1428 AEST.
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