The Boral Limited (ASX: BLD) share price is pushing higher today amid the company's annual general meeting (AGM) address and first-quarter trading update.
At the time of writing, shares in the construction supplies company are being exchanged at $6.57, up 3.96%.
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What's pushing the Boral share price upwards?
Investors are buying up the Boral share price this morning as the company conducts its AGM. An AGM itself is not price-sensitive and usually has little bearing on the company's share price. However, the market appears to be paying attention to the trading update contained in the AGM slides.
According to the release, during the first quarter of FY22 Boral experienced significant impacts from COVID-19 lockdowns. These impacts were reflected in concrete volumes declining 2% compared to the previous corresponding period. Meanwhile, where construction was halted, in New South Wales, volumes dropped by as much as 14%.
However, quarry volumes managed to perform better compared to last year. The segment witnessed a 3% incline thanks to a lift in asphalt. Although, asphalt sales were on a lower margin basis due to the completion of higher-margin project work in the prior year. Despite this, the market is showing optimism for the Boral share price today.
Overall, total revenue was down 1% in the first quarter compared to 1Q FY21, while earnings before interest and tax was down more heavily. Investors might be willing to overlook these inhibited figures for the company's more positive future outlook.
The outlook
The Boral share price could be gaining momentum today based on its outlook for the remainder of FY22. In its AGM slides, the company said it foresees a rebound in activity as the economy exits lockdowns.
There are some lingering COVID impacts that are expected to carry forward through the year. Namely, further volume impacts are anticipated in October, with the Victorian state being the main culprit.
In saying that, Boral's management expects the culmination impact for FY22 will not exceed $50 million.
