Building products supplier CSR is revelling in the Australian housing construction boom, logging a lift in its interim profit, and flagging continued solid growth.
Net profit after tax rose to $77.6 million for the six months through September, an increase of 13 per cent on the prior interim result, driven by a "significant increase" in earnings from its building products and aluminium businesses.
Revenues rose 14 per cent to $1.14 billion, thanks to the strong housing boom in the Australian property market.
CSR shares rocketed on the news, posting their biggest jump in nearly two decades, streaking as much as 14 per cent higher to $3.33.
By the the 4.15pm (AEDT) official market close, the stock had moderated its gains to a rise of 4.12 per cent to $3.03.
It puts CSR stock back on the mend, having closed yesterday at $2.91 after tumbling 25 per cent over the year-to-date.
“Residential construction approvals continue to grow in both detached and multi-residential sectors with some states reaching record levels,” CSR managing director Rob Sindel said.
"Given recent building approvals and financing data, as well as feedback from our major customers, we anticipate robust demand for our key products will continue over the medium term, bolstered by improving activity in the alterations and additions market."
CSR said earnings rose 32 per cent to $92.4m, excluding significant items, which included costs to complete its bricks business joint-venture merger with Boral.
The company expects its underlying profit for the full year will be higher year-on-year and towards the upper end of analyst forecasts of $128m to $162m.
CSR will pay an 11.5c unfranked interim dividend on December 15, up 35 per cent on a year earlier.