Boral (ASX: BLD) downgrades again

Stock

Boral (ASX: BLD) $4.60 as at 4/02/2019

Event

The fall from grace of building materials company Boral continued today as the stock slides over 6% early in the session. The further weakness in the share price comes as Boral updated the market on their expectations for FY19.

Despite record levels of infrastructure spend locally and in the US, Boral is now expecting little to no growth in EBITDA in the first half of FY19, while guiding to NPAT of around $200m.

Commentary for the full year result also turned a little sour with Australian operations seen flat for the year down from previous guidance of low single digit growth, North American operations to see 15% growth at the EBITDA line which is down from 20% growth at previous guidance, and profits from the USG Boral joint venture now expected to be slightly lower in FY19, down from profit growth of around 10%.

Also concerning investors is further warnings around a strong second half skew to the result, with Boral pointing to volume lags, project delays and extreme weather in the first half holding back earnings despite strong underlying market conditions.

Boral will report their first half result on February 25.

Boral (ASX: BLD) Chart

Boral Limited (BLD)

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