Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

CSR (ASX:CSR) reveals mixed HY21 report

CSR Limited (ASX:CSR) has announced a mixed HY20 result to investors today.

CSR Limited (ASX: CSR) has announced a mixed HY20 result to investors today.

CSR is a construction materials business with various brands like Gyprock and Bradford. Its construction business is split across three different divisions: interior systems, masonry & insulation and construction systems.

HY21 report

CSR reported that its trading revenue fell by 6% to $1.075 billion.

EBITDA (click here to learn what EBITDA means) dropped by 12% to $143.1 million and group EBIT fell by 17% to $94.4 million.

There was a bit of a mixed performance within its divisions. Building product EBIT actually rose a small amount to $96.3 million, but aluminium EBIT fell significantly by 76% to $6.2 million. The property division generated EBIT of $1.7 million whilst corporate expenses at the EBIT level were $9.8 million.

Underlying net profit dropped 7% to $66.4 million and statutory profit dropped 15% to $58.7 million.

Despite a broader market slowdown, the company managed to remain resilient from its diversified base. Indeed, CSR’s largest business Gyprock delivered increased earnings. But Bradford and PGH Bricks were lower as they have significant exposure to the detached housing market which was down 9% in the period.

Dividend

CSR’s board declared an interim dividend of 8.5 cents per share and a special dividend of 4 cents per share, reflecting that it didn’t pay a final dividend last financial year.

Summary thoughts

It’s not shooting the lights out like e-commerce shares, but it has proven resilient despite the Australian recession.

Building product revenue is down 6% in the first four weeks of FY21. But the first tranche of the Horsley Park stage 2 is on track to deliver earnings of $53 million in the second half of FY21.

But I wouldn’t want to buy shares, for starters I’d pick Brickworks Limited (ASX: BKW) shares which I wrote about here.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.
Skip to content