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| Rinker announces unaudited results for 3rd quarter Australian construction materials firm Rinker Group Ltd announced that earnings per share for the three months ended 31 December 2006, rose 16% to 20.3 US cents per share, compared with the December quarter 2005. Profit and profit margins rose in all major US business segments, despite lower volumes due to the housing correction. Return on funds employed (ROFE) was higher in all US businesses - except the concrete, block & asphalt segment. ROFE was also higher in the Australian operations, trading as Readymix. Net profit after tax increased 13% to US$182 million, and earnings before interest and tax (EBIT) rose 8% to US$269 million. Trading revenue was up 4% to USD$1,286 million. These results include the US$5 million pre-tax cost of the defence against Cemex's hostile takeover offer and a US$16 million tax consolidation gain for Rinker. For the nine months of Rinker's fiscal year to 31 December, earnings per share was up 16% to 65.6 US cents, profit after tax up 13% to US$592 million and EBIT up 13% to US$918 million. Trading revenue was US$4,151 million, up 9%. Rinker's financial leverage increased following the return of US$626 million to shareholders via a capital return and special dividend in July and August last year. In addition, US$155 million was invested in the share buyback, prior to it being put on hold in October due to the Cemex takeover offer. Rinker is actively reviewing various alternatives and continues to recommend that shareholders take no action in relation to the Cemex offer. Forecasts of US construction activity generally predict a further decline in housing, together with strong infrastructure and non-residential/commercial activity. In Australia, housing is forecast to begin recovering from the second half of 2007, while infrastructure and commercial construction remain at high levels. write your comments about the article :: © 2007 Construction News :: home page |