Brickworks sale cements earnings rise
BRICKWORKS expects a rise in its first-half earnings after selling a parcel of land in western Sydney to a trust it part owns with property developer Goodman Group.
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.