BORAL LIMITED 
By 27 June 2012
Recent Events in Australia Impacting Boral Trading
Boral's Australian sales volumes in the fourth quarter have
been materially affected by adverse weather in June, further
delays in major resource sector and road projects, weaker
property sales, an earlier than planned maintenance shutdown
at Waurn Ponds Cement Works and continued weakness in the
residential construction sector.
Performance in Boral's US and Asian operations is broadly in
line with second half forecast.
At the half year, guidance was given for 2012 Net Profit
After Tax (NPAT) before significant items to be within the
range of $150 million to $175 million. A trading update was
issued on 20
April which stated that the third quarter FY 2012 NPAT was
$22 million below expectations, effectively reducing the
range to $128 million to $153 million.
Boral now expects FY 2012 NPAT before significant items to be
within the range of $100 million to $110 million, assuming
two property sales (which are close to finalisation that are
expected to yield between $20 million to $24 million NPAT)
take place prior to 30 June. The current investment analyst
range for FY 2012 NPAT is $115 million to $139 million.
Commenting on the trading update, Boral CEO Ross Batstone
said, "A number of recent events have come together to weaken
Boral's trading performance in the fourth quarter which add
to the impact of ongoing weakness in the Australian new
housing construction market. March quarterly housing starts
in Australia released last week reported a 25% decline over
the prior year.
"Boral's underlying strategy remains sound. We will continue
to focus on the reduction in borrowings through the
divestment of non-core operations, tight management of
capital expenditure and working capital. Capital expenditure
for FY 2012 is now projected to be at the lower end of the
$400 million - $450 million guidance given at the half
year.
"Based on our current strategy and plans, we do not expect
there will be any need for additional equity raising in the
short to medium term. Boral continues to operate comfortably
within its banking covenants.
"We continue to focus on our core strategies, the integration
of the acquisitions made during the first half of the year
and the divestment of non-core businesses," Mr Batstone said.
Boral will announce its FY 2012 results on 22 August 2012 at which time it will provide a further update.
For more information:Penny Berger
Group Communications & Investor Relations Manager
Tel: +61 2 9220 6591
Mark Gell
GSG Counsel
Tel: 0419 440 533
Boral Limited ABN 13 008 421 761 - GPO Box 910 Sydney NSW 2001 - www.boral.com.au
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