Housing market 'has bottomed'

SYDNEY - Building and construction materials group Boral says the United States and Australian housing markets have bottomed but it is too early to predict when and how well they will recover.

Boral yesterday reported net profit for the year ended June 30, 2009, of A$142 million ($174 million), 42 per cent lower than A$243 million in the previous year.

Earnings before interest, tax, depreciation and amortisation (ebitda) dropped 22 per cent over the year, reflecting a significant deterioration in building and construction market activity in the US and Australia.

Second-half earnings were particularly affected.

Boral did not provide net profit guidance for 2009/10 but said a trading update would be provided at the company's annual meeting on October 28.

Chief executive Rod Pearse said both the Australian and US housing markets had reached the bottom of their severe downturn, but a recovery was not expected until after December.

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Posted: 20 Aug 2009

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