Overview

Directors are pleased to present the unaudited financial results for the six months ended 31 December 2009.

Net earnings were $154 million, 10 percent lower than for the prior corresponding period. Operating earnings (earnings before interest and tax) before unusual items decreased to $271 million, from $322 million in the same period in the previous year. Cashflow from operations was 52 percent higher at $317 million.

Sales declined by 10 percent to $3.4 billion from $3.8 billion. Stronger sales were achieved in the insulation and construction businesses, but these were more than offset by weaker sales elsewhere. Sales in the Steel division fell by $194 million, or 25 percent, as a result of lower steel prices and volumes. Lower activity levels in the residential and commercial construction markets in New Zealand resulted in lower sales in the Distribution division, with sales from concrete activities in New Zealand 17 percent lower. The Laminates & Panels division recorded a sales decline of $104 million, or 10 percent lower, due principally to weak markets in the USA and Europe.

Earnings per share excluding unusual items were 26 cents, compared with 37 cents in the previous half year.