Brickworks expects rise in earnings
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SYDNEY, Feb 1 AAP
February 01 2013, 1:01PM
Brickworks expects a rise in its first half earnings after selling a parcel of its land in western Sydney to a trust it part owns with property developer Goodman Group.
The building products maker expects earnings from its land and development business in the six months to January 31 to be more than $34 million, up from $13.3 million in earnings in the same period in the previous year.
The earnings will be boosted by the sale of Brickworks' $62.6 million Oakdale South site in Sydney's Eastern Creek into its joint venture property trust.
The trust is a 50/50 partnership between Brickworks and Goodman, which now controls 170 hectares of land in the Eastern Creek area that is open to industrial or residential developments.
Brickworks said on Friday it expects a small fall in earnings in its building products division, from $14.4 million in the previous corresponding period.
Sales volumes have fallen in the period, but revenue is expected to be steady due to higher prices, Brickworks said.
Some operations have also been disrupted, most notably a timber plant at Deanmill in Western Australia, which has been out of operation since a fire in August.
Floods in Queensland also affected some plants, but all are now back in operation, Brickworks said.
Brickworks shares were steady at $12.62 at 1244 AEDT.