CSR Ltd's earnings sweeten by 5

Building products maker and sugar refiner CSR Ltd expects its group earnings to rise by more than five per cent this year, despite the challenges of a softer housing market.

The company, which is holding its annual general meeting in Sydney, said it is seeing clear signs of stress related to high interest rates and lower consumer confidence.

But chairman Ian Blackburne said the company still has a strong platform for growth.

"Some of our core business sectors, such as housing, continue to be challenging," he told shareholders.

"We are seeing clear signs of interest rate stress and loss of consumer confidence.

"Having said that, we are focused on the medium term and I believe CSR is establishing a strong platform for growth to continue to deliver value for shareholders."

Managing director Jerry Maycock said group like-for-like earnings before interest and tax (EBIT) for fiscal 2009 was expected to be slightly above the previous year, as CSR benefits from a full year of earnings from its Viridian architectural glass business.

"Overall EBIT (IS) currently expected to increase more than five per cent," he told shareholders according to a slide pack released to the stock exchange.

Mr Maycock also forecast building products like-for-like earnings to be ahead of last year, but cautioned that market conditions remain uncertain.

Sugar EBIT is expected to be higher than last year, based on average weather conditions and current raw sugar prices.

Aluminium EBIT is projected to be slightly lower than last year.

CSR, which has a reporting year ending March, posted a net profit of $177.4 million for fiscal 2008.

The result was down 35 per cent on the previous corresponding year and was impacted by lower world raw sugar prices and unprecedented wet weather in Queensland.

Group EBIT was $386.3 million, down five per cent.

CSR had forecast fiscal 2009 EBIT to grow organically and as a result of the positive impact of its glass business.

Mr Blackburne said also that the company was frustrated with its recent share price performance.

"Clearly the past year has been a volatile period on world markets," he said.

"The on-going fall-out from the credit crunch in the US, together with a rapid increase in the price of oil and many resources, driven mainly by economic expansion in the developing world, has put stress on several economies including Australia.

"Investors are cautious and CSR, like most other companies in our market, has not been immune from the effects.

"Like you, we are also frustrated with the share price performance recently.