CSR Limited

A booming sugar price has helped CSR produce sweet returns for the first six months of its 2005 financial year. Net profit (before significant items) increased by 29% to $128.6m while, impressively, earnings per share increased 32% to 14 cents. An interim dividend of six cents per share was declared, up 20% on last year. The company also made a $78m one-off gain from the settlement of some long-standing litigation and a change in tax treatment. The profits from the aluminium and building product divisions were relatively flat, but sugar benefited from soaring prices with earnings rising 56%. The stock price has surged since our last review inissue 157/Aug 04 (Sell—$2.29), but this is a cyclical business and we continue to recommend that subscribers SELL.