The Boral Limited (ASX: BLD) share price tumbled 20 per cent this afternoon after its $272 million net profit for fiscal 2019 landed well short of analysts' expectations.
On an adjusted basis net profit after tax before amortisation (NPATA) & significant items came in at $486 million, but that's still down 6 per cent on the comparable amount in fiscal 2018.
Boral's CEO, Mike Kane, blamed soft new housing starts in Australia and the US as confidence in property markets sagged. "Our business is not immune to market cycles, or adverse weather, and in response to softer market conditions and extreme rainfall events in the US, we have delivered tangible benefits this year through improvement initiatives and cost reduction programs, with more expected in FY2020."
The final straw for investors though was actual guidance for FY 2020 profit before significant items to be some 5% to 15% lower on a disappointing FY 2019.
Other groups to blame weak property markets for poor results recently include realtor Mcgrath Ltd (ASX: MEA), builder Adelaide Brighton Ltd (ASX: ABC) and home loan giant the Commonwealth Bank of Australia (ASX: CBA).
