Business Description:
Brickworks Limited (BKW) is an Australian brick manufacturer. BKW has manufacturing operations in all mainland states and Tasmania. It also manufactures roofing tiles, floor tiles, concrete blocks and timber products. As at 31 July 2011, BKW owns a 42.85% interest in associate Washington H Soul Pattinson (SOL).

Strategy Analysis:
BKW´s goal is to become Australia's 'Best Building Products Company´ - an iconic brand with superior and sustainable market position, returns, customer satisfaction and employee engagement. This is being achieved by the combination of a strong geographical footprint with activities backed-up by high quality raw materials and a focus of being the lowest cost producer. Organic growth coupled with bolt-on acquisitions leveraging off existing business and infrastructure is resulting in a growing market share in a competitive industry. The Land and Development activities cleverly maximise the use of the legacy assets creating a growing annuity style income stream from the development of significant strategically located industrial land holdings. This income, along with returns from the strategic shareholding in SOL, is an ideal balancing factor for the more cyclical Building Products operations. Brickworks reported NPAT up 3% to $142.55m for the year ended 30 June 2011. Revenues from ordinary activities were $635.62m, down 3% from last year. Basic and Diluted EPS were 96.7 cents compared to 96.7 cents last year. Net operating cash flow was $89.02m compared to $146.51m last year. The final dividend declared was 27 cents, taking the full year dividend to 40.5 cents compared with 40 cents last year.