Boral’s $1.14b loss prompts review

Building suppliers provider Boral has slumped to a full-year loss of $1.14 billion after it wrote down the value of assets due to the weakened Australian and US housing markets.

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.

Write-downs of $1.32 billion were based on forecast declines in the US and Australian housing markets.

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.

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 0.52 per cent to $3.86 at 1153 AEST.

Be the first to comment

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.