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East coast demand boosts Adelaide Brighton

Business

Construction materials supplier Adelaide Brighton expects improved sales in several of its key products, due largely to demand from east coast markets.

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Chief executive Martin Brydon told the company’s annual general meeting that the company expects 2016 sales volumes of cement and clinker to be similar or slightly less than in 2015.

Cement and clinker markets in South Australia and NSW were stronger, Victoria and southeast Queensland were stable and Western Australia and the Northern Territory were weaker, he said.

Cement sales generated 47 per cent of Adelaide Brighton’s revenue in 2015.

But the company expects significant growth in sales of pre-mixed concrete, and aggregate sales volumes, in 2016, due to stronger east coast markets.

Sales of concrete products are also expected to be better than in 2015.

Lime sales volume is expected to be slightly higher, and average realised prices are likely to be higher, Mr Brydon said.

Adelaide Brighton has raised prices across all products in 2016, a reflection of strong demand and a weaker Australian dollar, which increases the cost of imports, he said.

The company also expects the sale of some property in 2016 to generate a profit of about $6 million.

“There is much more we can achieve as we continue to implement our long term strategy and strive for greater rewards both for our shareholders and for all of the company’s stakeholders,” Brydon told shareholders.

Adelaide Brighton made a record annual profit of $208 million in the 2015 calendar year.

Its shares were up 10 cents, or 1.85 per cent, at $5.52 at 1200 AEST.

AAP

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