Boral Limited (ASX: BLD) has released investor day presentation slides detailing progress made so far in 2H19. Here’s what you need to know.
About Boral
Boral is an international construction materials and building products business employing more than 25,000 employees and contractors. Boral’s operations span 850 operating and distribution sites globally.
What Was Released?
The documents released this morning are a copy of slides being presented to Boral investors in Sydney today.
The slides include updates on 2H19 so far. In these slides, Boral states that they have shifted their focus from residential to infrastructure due to a slowdown in South East Queensland, New South Wales, Western Australia and South Australia. They reported that Victoria infrastructure is strengthening.
While the infrastructure projects that were delayed in 1H19 are now on track, there have been further delays in Victoria, Western Australia and Queensland.
Concrete volumes, which made up 47% of 1H19 revenue, are tracking to be softer than 2018 volumes.
Boral stated that second half revenue will be “broadly in range of our expectations” but a strong June is needed to secure these figures.
What’s Next For Boral?
Boral’s operations focus heavily on residential and infrastructure projects, so any slowing in infrastructure spending could impact on the share price. Boral investors should be watching the macro figures closely, particularly figures like building approvals, which are down 10.3% on last year. These macro figures could give an indication of where the infrastructure and construction industries are heading and could provide a rough outlook for Boral.
Is It A Buy Or Sell?
Boral is in a tough industry that is facing a lot of uncertainty right now. The broader figures suggest that construction is declining, and Boral’s report shows that they are relying on one good month to be able to reach expectations. Based on that, I don’t feel inclined to be buying right now.
I’d be more comfortable investing in one of the companies mentioned in the free report below.
[ls_content_block id=”14945″ para=”paragraphs”]
Disclosure: At the time of writing, Max does not own shares in any of the companies mentioned.
