Australia: Construction materials maker Adelaide Brighton has increased its net profit by 3.9% to US$158m in 2012, from US$152m in 2011. The company said that mining and resources projects in South Australia, Western Australia and the Northern Territory had more than offset weakness in residential and commercial construction.
"While net profit increased only modestly in 2012, we see this as a good result considering the challenges facing the industry," said managing director of Adelaide Brighton, Mark Chellew.
The company's revenue rose by 6.9% to US$1.21bn in 2012 from US$1.13bn in 2011. Earnings before interest and tax (EBIT) rose by 1% to US$232 from US$229m.
Although the company didn't provide any specific details on the cement part of its business, it did comment that sales increased overall in 2012 due to increased mining and project demand despite the weak building sector. Energy costs increased by 8%, including the US$3m after tax impact of the carbon tax. Adelaide Brighton said it is employing a number of strategies to mitigate rising energy costs including fixed price energy contracts for a portion of energy requirements, the use of alternative fuels and a continual review of operational improvements.
In December 2012 Adelaide Brighton acquired 30% of an integrated white clinker and cement production facility in Malaysia for US$29.5m. The investment is expected to generate acceptable returns and secure long term supply for Australian markets.
Chellew said the carbon tax, environmental regulations and cost pressures were likely to affect the outlook for 2013 but reaffirmed the company's commitment to reducing its carbon footprint by using imported materials and alternative fuels. The company said the high Australian dollar had enabled it to import more clinker, cement and blast furnace slag at cheaper prices. However, the strong currency and mixed local demand had curtailed domestic price growth.
