CSR Back in Profit

CSR (ASX:CSR) has seen its books return back to profit, reporting a net profit in the half year to September 30 of $63 million, compared to a $155.6 million loss in the previous corresponding period last year.

CSR EBIT (Earnings before tax and interest) from continuing operations, after significant items, fell 41 per cent to $70.5 million, excluding Sucrogen and Asian insulation business Rockwool Group, which are being sold. It said it expects the deal to complete in November, and it would update the market on capital management after the event. The group expects to make $1.6 billion from the sale of its sugar business Sucrogen business to Wilmar International.

CSR has declared an interim dividend of 3 cents per share on December 10, compared with 2.5 cents last year.

In the group's aluminium business, the high Australian dollar to US dollar exchange rates has eroded some benefit of improved spot metal prices in recent months. "While Gove Aluminium Finance has added modestly to its hedge book recently to take advantage of these higher prices, the net hedged position of 50 per cent for the second half of the year remains lower than in previous years," CSR announced. "As a result, earnings in aluminium will continue to be dependent on the Australian dollar spot price of aluminium."