Displaying items by tag: Australia
Martin Brydon appointed Managing Director at Adelaide Brighton
25 November 2015Australia: Martin Brydon has been appointed the Managing Director of Adelaide Brighton. He is currently the Chief Executive Office of the Australian construction materials company.
Brydon, aged 60, trained in electrical and electronic engineering with BHP before completing a Masters Degree in Business Administration and the Stanford Executive Program in the USA in 1998.
Brydon joined Cockburn Cement Limited as an Electrical Engineer in 1981. In 1998 he was appointed Cockburn Cement Limited's Chief Executive Officer. Following Cockburn Cement's merger into Adelaide Brighton in 1999, Brydon became the Group General Manager for the Western Division.
In 2001, Martin was appointed to the position of General Manager, Strategy and Business Development for the Adelaide Brighton group of companies. In 2005, Martin was appointed to the position of Executive General Manager, Cement and Lime at Adelaide Brighton and in 2014 in became its Chief Executive Officer.
Australia: James Hardie's adjusted net operating profit for the second quarter of its 2016 fiscal year, which ended on 30 September 2015, was flat at US$65.3m and up by 12% for the first half of the year to US$129m. The quarterly result was affected by a higher adjusted income tax expense and higher gross interest expense offsetting the favourable operating performance. Half year sales were up by 2% to US$879m.
CEO Louis Gries said that all business units had performed well, driven in particular by its USA plants and lower input and freight costs. He said that primary demand growth in its USA business had again tracked below its targeted level. The company will focus on lifting its USA primary demand growth rate back up over the next several quarters.
The company expects its USA and Europe fibre cement segment earnings before interest and taxes (EBIT) margin to be towards the higher end of its stated targeted range of 20 - 25% for its full 2016 fiscal year.
In other news, James Hardie has re-opened its Queensland, Australia fibre cement manufacturing facility following a US$64m expansion. It said that the expansion of Carole Park, near Brisbane, will boost Australian capacity by 40% to meet strong domestic demand. "At a time of decreasing investment in manufacturing in Australia, James Hardie's US$64m investment in this new facility reflects our confidence in our Australian business, the future of manufacturing in this country and the underlying economy of Australia," said Gries.
Boral benefits from higher sales prices
05 November 2015Australia: Boral chief executive Mike Kane has said that higher product prices are playing a part in the strong performance of its key businesses so far in the 2015-2016 fiscal year. He noted that cement prices were up in New South Wales and southeast Queensland but steady elsewhere.
"Based on the first quarter results, we are seeing an improvement in year-on-year results. The business is consistent with our expectations this year," Kane told shareholders at Boral's AGM. "Price is playing a role in our performance, as well as cost management. On average, we think prices will move up, but we will have more clarity on that as we get through the half year."
The company has experienced lower demand from roads, engineering and major infrastructure projects so far in the 2015 – 2016 fiscal year, but has responded by reducing costs and pushing through a number of surplus property sales.
Boral annual profit up by nearly a half
27 August 2015Australia: Boral has recorded an increase in full-year profit, buoyed by the return to profitability of its US business for the first time since 2007, a pick-up in local demand and cost-cutting initiatives.
Australia's largest building materials provider posted a net profit of US$183m in the year to 30 June 2015, a 48.3% increase on the previous year's US$123m. Underlying profit rose by 45% to US$178m. However, Boral's total revenue over the same period fell by 15.2% to US$3.15bn.
Boral chief executive Mike Kane said that the results reflected the benefits from the company's overhaul of its business which reduced the size of its workforce and resulted in the closure of some unprofitable operations. "We've improved Boral's cost base, strengthened the balance sheet and we are managing our portfolio of businesses more efficiently," he said.
In the current 2016 fiscal year, Boral said it will focus on maintaining underlying earnings from construction, materials and cement, while property earnings remain uncertain. Building products are seen remaining broadly steady, while USGBoral will deliver further underlying improvement.
Australia: Adelaide Brighton will pay a special dividend of US$0.04/share on top of an interim dividend worth US$0.08/share to shareholders as Australia's housing boom continues to drive demand for its cement and other building-material products.
It follows a record net profit of US$82.6m in the six months through June, up by 61% on the corresponding period of 2014. The company said that it expects is underlying earnings of US$200 - 215m for the full fiscal year. That estimate includes a US$32m profit on property sales.
"We are very pleased to deliver another record half year result which reflects improving construction activity across our business, an increase in lime sales, our 2014 acquisitions and several property transactions," said chief executive Martin Brydon. "Housing activity is at healthy levels on both the east and west coast of the country and this is augmenting the demand for our products from major infrastructure and resources projects."
Australia: James Hardie Industries has 'washed its hands' of any responsibility for a shortfall in compensation payments to asbestos victims as it reported robust profit growth and rewarded shareholders with an ordinary second half dividend of US$120m and a US$98m special dividend.
In February 2015, Andrew Constance, who was then New South Wales treasurer, agreed to increase the state's loan facility to the Asbestos Injuries Compensation Fund (AICF) by more than US$100m after a blowout in expensive mesothelioma claims threatened to leave the fund short of cash for future claims. Constance amended the loan terms after the fund said in 2014 that contributions from James Hardie were likely to be insufficient and it would apply to the NSW courts to pay some claimants in instalments unless it received a top-up. Under the terms of an agreement struck in 2007, James Hardie pays 35% of its operating cashflow to the fund.
Group chief financial officer Matt Marsh said that dividend policy was unrelated to asbestos liabilities. "The way we declare our dividends isn't related to the AICF," said Marsh. "We always prioritise making that payment to the AICF and then we start to allocate our capital that is left over." During 2014 - 2015, James Hardie paid US$113m to the AICF. It expects to make another payment of US$62.8m on 1 July 2015. James Hardie has paid US$718m to the fund since it was set up in 2007.
Chief executive Louis Gries said that James Hardie's manufacturing plants, 'Were getting a pretty good kick' in the quarter that ended on 31 March 2015 following some start-up troubles earlier in the year, while falling pulp and freight prices had reduced costs. During the quarter, earnings before interest and tax margins hit the top end of the group's 20 – 25% range. He said that after focus on operational improvements over the past two years, the company would now chase sales. "We are definitely shifting more of our management attention to how we grow the top line rather than how we get efficiencies," said Gries.
James Hardie is aiming for fibre cement to account for 35% of the external cladding used in the US housing market, with James Hardie controlling 90% of that market. During the 2014 - 2015 year, the company spent US$173m on expansion projects to meet growing demand. Gries said that James Hardie's plants and capacity would keep expanding along with the housing recovery. James Hardie expects US housing starts of 1.1 - 1.2m in 2015 - 2016 and 'improved results' in the Asia Pacific region.
Australia: Boral will repurchase up to US$182m of its shares after a string of divestments bolstered the company's balance sheet. It intends to buy back up to 5%, or about 39 million shares, of its issued capital on-market over the next 12 months.
Boral chief executive Mike Kane said that the completion of a number of transactions, including the US$127m sale of its Western Landfill business in Melbourne to Transpacific Industries, had allowed for the share repurchase.
"This buyback reflects Boral's commitment to efficient capital management and delivering improved returns to shareholders," said Kane. "At the same time, we are maintaining flexibility to respond to changes in market conditions and to take advantage of appropriate growth opportunities that may present in the future." Kane had already flagged acquisitions in Asia and North America and said that Boral was too unbalanced towards Australia.
Boral was reportedly considering a sell-off of its building products division, but indicated it would instead look for savings through cost-reduction programs and joint ventures. A brickmaking joint venture with CSR will proceed after receiving approval from the Australian Competition & Consumer Commission, with the expectation of savings of between US$5.39 – 7.69m between Boral and CSR.
Australia: Adelaide Brighton boss Martin Brydon said that he would pursue funding from the Abbott Government's US$2.55bn Emissions Reduction Fund (ERF) as Adelaide Brighton accelerates its alternative fuel use to head off its rising gas bill. The ERF is the centre-piece of the government's direct action climate policy and the first auction for funding starts on 15 April 2015.
Adelaide Brighton has a total energy bill of around US$130m/yr. Brydon said that the group will save US$6m/yr from the repeal of the carbon tax. "We are energy-intensive and capital-intensive. Anything that happens that can reduce the cost of energy is critical," said Brydon.
Adelaide Brighton's Birkenhead cement plant in south Australia, which recently expanded its cement production capacity to 750,000t/yr, generates 15% of its energy from waste wood used in construction. Brydon said that he plans to take that number to 30% and that he 'will certainly' be bidding for grants from the ERF. "The cost of that waste wood energy is significantly below the cost of natural gas," said Brydon.
In 2014, Adelaide Brighton reported a 14.3% rise in net profit to US$136m and a 9% rise in revenue to US$1.06bn. The profit and revenue numbers were both records for the company, although after stripping out one-off items the underlying profit was US$132m. Strong residential housing activity in NSW and Queensland, work on the Pacific Highway upgrade and ongoing demand from resource projects in western Australia and the northern regions buoyed sales. Adelaide Brighton said that it expects price increases in 2015 across all of its products.
In August 2014 the company acquired two concrete businesses and a quarry. Brydon said that he is looking for other businesses to buy, but opportunities for quality long-term assets were 'few and far between.'
James Hardie profit jumps despite soft US housing recovery
20 February 2015US/Australia: James Hardie chief executive Louis Gries said that the pace of the US housing recovery is underwhelming and remains below expectations as he reported an 11% rise in its third quarter 2015 adjusted profit to US$48.6m. Gries said that James Hardie has managed to increase prices on some product lines despite the slower-than-expected rebound in new home building in the world's biggest economy.
"We have higher volumes in all of our businesses and our average price is up in the US. The US housing market is still pretty flat for new construction. Housing starts are well below what you'd expect three to four years into a recovery," said Gries.
Despite on-going muted building in the US, where James Hardie derives about 80% per cent of its revenue, the company is going ahead with big capacity expansions at its Plant City, Florida, plant and at plants in Cleburne, Texas and Carole Park in Queensland, Australia. In the first nine months of its 2015 financial year, which ended on 31 December 2014, James Hardie spent US$154.3m on capacity expansions and new land acquisitions in New South Wales, Australia and Tacoma, Washington, USA. Some capacity expansions have been delayed pending a pick up in conditions.
James Hardie's net operating profit in the quarter that ended on 31 December 2014 rose by 17% year-on-year to US$108m. Revenue rose by 10% to US$388m. James Hardie expects full-year adjusted net operating profit to be between US$210 - 222m. In its Asia Pacific business, James Hardie expects strong growth in the Philippines due to momentum in high rise developments and a push into the commercial building market. The Australian and New Zealand businesses are both expected to improve on the back of strong new home building and a rebound in repairs and remodelling in Australia.
James Hardie has a legacy asbestos liability to compensate victims suffering asebestos-related diseases from use of the company's former products. It pays 35% of its operating cash flow into the independently-run Asbestos Injuries Compensation Fund (AICF). In the first nine months of its financial year, asbestos claims were 11% higher than actuarial expectations. On 1 July 2014, James Hardie paid US$113m to the AICF.
Cement ball mill to become Kandos museum exhibit
11 February 2015Australia: The Kandos Bicentennial Industrial Museum has moved a ball mill from the former Cement Australia Kandos plant to its collection. The aim is to make the mill the centre of the museum's external collection, according to local press.
"We were very lucky to be offered the ball mill by Cement Australia," said Dr Buzz Sanderson, president of the Kandos Museum. "When Cement Australia decided to demolish the Kandos Cement Works, it asked us which parts we wanted to exhibit at the museum and the ball mill was one of them. There was a plan at one stage to place the ball mill down near the railway station at the entrance to town but there were just too many safety concerns."
The ball mill will be placed beside the Kandos Museum to give visitors to the museum a sense of how the machinery worked when it was in operation. The museum has had three sections cut away from the machine that will allow guests to look inside and see the inner workings of the machine.