Boral chief executive Rod Pearse told investors at Boral’s annual meeting in Sydney that earnings could fall by about $200 million this year as a result of a 45 per cent drop in housing construction in the United States and low demand for building products in Australia, especially in NSW.

In NSW, traditionally Boral’s largest state market, new building starts were at the lowest level experienced in more than 40 years, Mr Pearse said.

“The spectacular decline in US Housing is not business as usual,” he said.

“The protected period of under-building in housing in Australia, especially in New South Wales, is not business as usual. The significant increase in costs including energy and fuel related costs in 2007/08 is not business as usual.

“The global credit crisis is not business as usual. The rapid and unexpected decline in the Australian dollar since year end is not business as usual.

“And, of course, climate change and the impending introduction of an Australian emissions trading scheme are adding to the challenges of managing the business.”

For the full story see the Southern Highland News, Monday, November 17