Shares of building materials supplier and lime producer Adelaide Brighton Ltd. (ASX: ABC) have today traded 8% higher following the release of its 2014 results this morning.
In the year to 31 December 2014, Adelaide Brighton reported that revenue from continuing operations increased 8.9% to $1.4 billion.
Supported by profit growth in cement, concrete and aggregates, earnings before interest and tax, or EBIT, rose 11.1% to a record $245.2 million. Excluding non-recurring items however, EBIT rose 8.5% to $172.7 million.
Earnings per share increased 13.5% to 26.9 cents (compared to analyst consensus of 24.7 cents), whilst healthy cash flows helped the company keep gearing lower than expected, at 31.7% and announce a final dividend of 9.5 cents per share, up from 9 cents per share last year. Payable on 16 April 2015, it takes the full year payout to 17 cents per share, fully franked.
In 2015 the company said it expects cement, lime and clinker sales volumes to be equal or greater than that achieved in 2014, with prices of all major products expected to increase.
An unwinding of the carbon tax, lower fuel costs, further Munster realisation benefits and full year corporate realisation are expected to benefit the company's bottom line.
