Brickworks shares fall on first-half loss
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More news: Shares in Brickworks dipped in early trading after the construction materials supplier swung to a first-half loss of $52 million.
Brickworks shares were down 3% to $28.35 by 11:00am AEDT
Brickworks slides to half-year loss
The news: Construction materials supplier Brickworks has slumped to a first-half loss on the back of revaluations in its property portfolio and softening demand in a slowing economy.
The numbers: The company reported a statutory loss of $52.08 million for the six months to 31 January 2024, compared to a $354 million profit a year ago. Sales revenue was also down 6.3% to $547.4 million.
It will still pay an interim dividend of 24 cents a share versus 23 cents a year ago.
The context: Brickworks attributed the weak result largely to a $233 million non-cash property devaluation and a $16 million loss on property sales. However, sales at its main Building Products Australia business also declined 11% in the half, although margins improved amid cost cuts and price increases.
Its North American business sales were steady while margins improved due to price increases and a shift to higher value products. The company recorded a 24% decline in earnings from its investment portfolio comprising of Washington H Soul Pattinson and FBR Limited.
What they said: “Despite the positive first half, order intake is softening, and we expect conditions to become more challenging for the remainder of FY24," managing director Lindsay Partridge said.
"In response to the short-term weakness, we are taking the opportunity to carry out maintenance activities at our plants, in preparation for the years ahead."
The source: ASX announcement
