Shares in construction material supplier CSR are lower after the company’s full-year profit sunk 59 per cent to $78 million, weighed down by higher electricity costs and losses associated with the sale of its Viridian Glass business.
CSR reported on Wednesday revenue from continuing operations for the year to March 31 rose four per cent to $2.32 billion, but revenue from its discontinued glass unit fell by $50 million, or 13 per cent, to $318.9 million.
CSR sold the troubled Viridian unit to Crescent Capital Partners in January for $155 million.
Earnings from continuing operations fell by 17 per cent to $265 million due to higher electricity costs in aluminium, which delivered $36.6 million in EBIT down from $79.5 million last year.
Shares in the company dropped 1.62 per cent to $3.335 by 1110 AEST.
Managing director and chief executive Rob Sindel said the building products business performed well despite the residential construction market slowing.
“This reflects our increased exposure to the non-residential market where CSR has been positioning its investments in both innovative product solutions and growth-linked capex,” Mr Sindel said in a release.
The company cut its final dividend by half a cent to 13 cents, partially franked, and forecast an uncertain year ahead for building products due to subdued activity.
Shares in the company were worth $3.39 before trade on Wednesday, down 40 per cent from $5.66 a year ago.
Meanwhile, the search continues for a successor to Mr Sindel, who signalled his intention to step down this year.
CSR said a new appointment is expected to be announced prior to the June 26 annual general meeting.
CSR PROFIT SHATTERS ON GLASS LOSSES
* Full-year net profit down 59 per cent to $78 million
* Revenue from continued operations up four per cent to $2.32 billion
* Revenue from discontinued operations down 13 per cent to $318.9 million
* Final dividend down half a cent to 13 cents, partially franked