AUS
NZ
UK
CA
USA
IND
Certainly, the CSR Limited (ASX: CSR) share price is currently facing a downturn in the midst of the release of its first-half results. The company operates in the materials manufacturing sector and is a prominent player among ASX industrial stocks. As of the latest data, shares in CSR have slipped by 1.2% to $5.55. It's worth noting that initially, the share price showed some promise, reaching $5.98 in the early moments of trading before reversing course and dropping.
Let's delve into the key highlights from CSR's recent results...
Energy Costs Impact: The first-half results have presented a mixed picture for investors. Key figures from the owner of renowned brands such as Gyprock, Bradford, and Himmel include:
- Group revenue showing a 5% year-on-year increase, reaching $1.4 billion.
- Group earnings before interest and tax (EBIT) reporting a 27% decline, with figures at $126 million.
- Statutory net profit after tax (NPAT) down by 11.5% to $92 million.
- An interim fully franked dividend of 15 cents per share, down from the previous figure of 16.5 cents per share.
- Segments Performance: CSR operates across three key segments: building products, property, and aluminum. While the building products segment demonstrated robust performance during the period, with a record EBIT of $165 million (an 18% increase), the property and aluminum segments did not fare as well. In particular, both property and aluminum segments reported negative EBIT in the half-year, with property showing a negative $1.5 million and aluminum a negative $24 million. The poor performance in the aluminum sector was attributed to elevated material and energy production costs.
- Analyst Views: Analysts from UBS and Citi have already provided their perspectives on CSR's results. Citi analyst Samuel Seow suggested that when adjusting for a "timing issue" in the property segment, before-tax earnings appear to be roughly in line with expectations. UBS analyst Lee Power went further and stated that the results could be seen as a slight beat, even with the aluminum segment's underperformance.
- Outlook: CSR offered some insights into its FY2024 outlook, including the inclusion of $44 million in contracted earnings from the property segment, stemming from the next phase at Horsley Park in New South Wales. On the flip side, an estimated EBIT loss ranging from $15 million to $30 million for the aluminum business is anticipated over the year.
These results follow CSR's share price performance over the past year, which has seen it rise by 19.3%. Analysts have set differing target prices for CSR shares, with UBS holding a target of $6.50 and Citi setting a more conservative goalpost of $5.45.
