Australia's Brickworks tumbles as full-year earnings plunge

Brickworks

28/09/2023 04:01

By Manvi Pant
       Sept 28 (Reuters) - Shares of Australia's Brickworks
 BKW.AX  fell nearly 12% on Thursday to emerge as the top loser
on the benchmark index, after the building materials maker
posted a 32% drop in earnings amid rampant labour shortages and
a raw materials crunch.
    The stock dropped as much as 11.7% to hit its lowest level
in more than five months and was the top loser on the benchmark
ASX 200  .AXJO  index.
    The building materials maker and property developer's
full-year underlying net profit after tax came in at A$508
million ($323.55 million), down from A$746 million a year ago.
    "Operations in both Australia and North America were
impacted by significant labour and raw materials cost increases,
and this resulted in lower margins," Brickworks said in a
statement.
    Managing Director Lindsay Partridge attributed the earnings
hit to "supply challenges" across the industry reflecting higher
operational costs and a wide range of planning and approval
issues.
    The company's final dividend of 42 Australian cents per
share was a touch higher than last year's 41 apiece. 
    Brickworks flagged lower development profits for its
property business in fiscal 2024, which analysts at Citi said
would be partially offset by strong rental growth.
     
    ($1 = 1.5701 Australian dollars)

 (Reporting by Manvi Pant in Bengaluru; Editing by Subhranshu
Sahu)
 ((Manvi.Pant@thomsonreuters.com; +918447554364;))