CSR outlook below forecasts- shares slide
Thursday July 10, 2008, 10:47 amMELBOURNE, July 10 (Reuters) - Australian conglomerate CSR Ltd (ASX: CSR.ax) said on Thursday it expected group earnings to rise over 5 percent in its current fiscal year, well below analysts' forecasts and knocking its shares down 15 percent.
CSR's latest forecast for earnings before interest and tax (EBIT) fell some way short of market expectations for EBIT growth of 13.8 percent to A$439.6 million ($419 million), according to Estimates.
CSR said earnings in its key building products and sugar units would both be higher than the previous year as it worked to offset higher costs.
"Some of our core business sectors, such as housing, continue to be challenging. We are seeing clear signs of interest rate stress and loss of consumer confidence," CSR Chairman Ian Blackburne told shareholders at the group's annual meeting.
The company's shares slumped to a four-year low of A$1.97 and last traded down 13 percent at A$2.02 in a broader market JO down 1.7 percent.
The company said in May it did not expect to break itself up in the near-term.
Instead it was focusing on growing its new glass business, Viridian, and capturing growth in demand for renewable energy, which it can supply with ethanol from sugar and co-generation from its plants where it uses biomass for fuel. ($1=A$1.05) (Reporting by Sonali Paul; Editing by James Thornhill)
More Quotes and Company Information:CSR LIMITED (ASX: CSR.ax)KEY2 LIMITED(ASX: KET.ax) ... read full article
Thu 10th July 2008 - 10:47am
Next Article: Credit purchases of basics tipped to rise
- Marks -amp Spencer to shed 1-000 jobs
- NSW Govt denies high-rise metro plan
- State rules out financial help for pulp mill
- State rules out financial help for pulp mill
- Leighton shares sink on asset write down
- Australia shares at 2-month high banks lead
- Leighton shares sink on asset write down
- Jail Madoff without bail- prosecutors
- US auto sales crash as 2008 sales hit lowest level since 1992
- Markets higher in early trade
- Todays News (60)
- 5th January 2009 (101)
- 4th January 2009 (23)
- 3rd January 2009 (32)
- 2nd January 2009 (51)
- 1st January 2009 (54)
- 31st December 2008 (75)
