Brickworks sale cements earnings rise
The building products maker expects earnings from its land and development business in the six months to January 31 to be more than $34 million, up from $13.3 million in the same period in the previous year.
The earnings will be boosted by the sale of Brickworks' $62.6 million Oakdale South site in Sydney's Eastern Creek into its joint venture property trust. The trust is a 50/50 partnership between Brickworks and Goodman, which controls 170 hectares of land in the Eastern Creek area that is open to industrial or residential developments.
Brickworks said it expects a small fall in earnings in its building products division, from $14.4 million in the previous corresponding period. Sales volumes have fallen in the period, but revenue is expected to remain steady due to higher prices, Brickworks said.
Some operations have also been disrupted, most notably a timber plant at Deanmill in Western Australia, which has been out of operation since a fire in August. Floods in Queensland affected some plants, but all were now back in operation.
AAP
Frequently Asked Questions about this Article…
Brickworks expects a rise in first‑half earnings after selling a parcel of land in western Sydney (the $62.6 million Oakdale South site) into a property trust it part‑owns with Goodman Group, which boosts its land and development income for the period.
Brickworks expects earnings from its land and development business for the six months to January 31 to be more than $34 million, up from $13.3 million in the same period last year.
The Oakdale South sale was a $62.6 million transfer of a site in Sydney's Eastern Creek into Brickworks' joint venture property trust with Goodman Group; that sale is a key driver of the increased land and development earnings reported for the half.
The joint venture is a 50/50 property trust between Brickworks and Goodman Group that controls about 170 hectares in the Eastern Creek area of western Sydney, land that is available for industrial or residential development.
Brickworks expects a small fall in earnings in its building products division versus the prior corresponding period (down from $14.4 million), with sales volumes falling even though revenue is expected to remain steady due to higher prices.
Yes. A timber plant at Deanmill in Western Australia has been out of operation since a fire in August, and some Queensland plants were affected by floods — though the company says all Queensland plants are now back in operation.
According to Brickworks, revenue in the building products division is expected to remain steady despite lower sales volumes because higher prices are offsetting the volume decline.
The earnings update covers the six months to January 31, and the details were reported in the article (credit AAP) summarising Brickworks' expectations and recent operational issues.
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