CSR shares rise despite profit drop and cuts to guidance and dividend

The news: Building products firm CSR has posted a drop in half-year profit on the back of higher energy and raw material costs and pared back full-year earnings expectations.

The numbers: It reported net profit of $94 million for the six months to 30 September, a 15% decline from a year ago. Trading revenue was up 5% to $1.4 billion, but overall earnings declined 27% to $125.5 million. It will pay a 15 cents per share dividend, down from 16.5 cents a year ago. CSR shares were up more than 2% to $5.72 in early trading.

The context: CSR's property and aluminium segments booked losses amid volatile market conditions, with the company attributing the fall in overall profit to energy and raw cost increases in its aluminium segment. It wound back earnings expectations for the business, estimating a full year loss in the range of $15 million to $30 million. However, higher prices and volume growth helped its building products division post record earnings, boosting its share price. UBS analysts called the overall result "a small beat even including an Aluminium miss".