GWA Group FY profit falls

The company's profits and revenue slides in the face of Australia's weak building sector, further than analysts had expected.

GWA Group has blamed Australia's weak building sector for its fall in revenue and net profit for 2012-13 that missed analyst expectations.

The company, which supplies fixtures and fittings to households and commercial premises, said full-year revenue fell 6% to $568 million and net profit tumbled 30.1% to $32.4 million.

"Net profit... was impacted by restructuring costs, following the strategic initiatives announced in December 2012, being partly offset by the sale of Gainsborough's property at Blackburn," GWA said.

Analysts polled by Bloomberg were anticipating net profit at $39.1 million.

Earlier this week the Australian Bureau of Statistics released numbers that showed building approvals had plunged 7% in June – below the decade average.

The company said despite the difficult trading conditions its restructuring was completed and had contributed positively to earnings before interest and tax (EBIT) and operating cash flow of $8 million.

256 employees were laid off before the inclusion of API Locksmiths, which GWA bought in September last year.

Net debt fell by $12 million to $162 million.

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