Construction materials and lime producer Adelaide Brighton expects sales of lime by volume to fall in 2014.
"Lime sales volumes for this year are likely to be down by around five per cent on last year due to the temporary suspension of operations by a major lime customer in the Northern Territory, and the impact of gold mine closures that occurred in the second half of 2013," incoming Adelaide Brighton chief executive Martin Brydon said.
In February, at the release of its full-year financial results for 2013, Adelaide Brighton anticipated that lime sales volumes over 2014 would be similar to those in 2013.
In its latest guidance to shareholders at its annual general meeting in Adelaide on Wednesday, Mr Brydon said the company still expects demand for cement and clinker to be flat over 2014 due to weakness in the non-residential construction sector and a decline in major projects in South Australia.
But the residential sector is continuing to recover and projects in Western Australia and the Northern Territory are supporting demand.
Mr Brydon also said that following an annual planned shutdown in March, the company's Birkenhead kiln in South Australia suffered operational problems resulting in a loss of production expected to hit pre-tax profit in the current half-year by $4 million.
He said that excluding certain items - including the Birkenhead production issues - both first half net profit and full year net profit in 2014 would be similar to that of 2013.
He said management was renewing efforts to further cut costs across the group.
Shares in Adelaide Brighton were 17 cents lower at $3.58 at 1458 AEST.
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