Building demand affects CSR

Press, 22 July 1989, Page 28

Building demand affects CSR

NZPA-AAP Sydney ' The building materials ajid sugar group CSR, was likely to have its profit growth in the year to March 1990 tempered by a downturn in construction demand, the chairman, Mr Alan Coates, said. He told shareholders at CSR’s annual meeting the company was aiming for a significant improvement in profit although “clearly we cannot expect to maintain the very high rate of growth achieved last year.” "Demand for building and construction materials in Australia must be affected by the punitive interest rates now applicable in both residential and commercial sectors,” Mr Coates said. CSR reported a 65% jump in earnings to sAust3os.BM in the year ended March 31 after the reorganisation of the company to move out of energy and minerals and concentrate on building materials and sugar. Mr Coates said a downturn in the first six to nine months of the year was inescapable, although demand in residential building was still fairly high and there was a “relatively full” pipeline of commercial work. In addition, CSR was protected from the cyclical nature of the building industry by the geographic spread of its businesses, he said. Mr Coates said a large part of CSR’s expansion would be outside Australia, in key markets such as the. United States where the company last year acquired Rinker Materials Corporation, and Europe. The company was actively looking for growth opportunities, he added. Mr Coates also said world sugar prices were expected to remain at satisfactory levels, while the outlook for aluminium was encouraging.