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Rinker's Profit Growth Slows on Waning Housing Demand (Update7)
July 18 (Bloomberg) -- Rinker Group Ltd., Australia's biggest building materials maker, posted its slowest profit growth in three years as U.S. housing demand waned and costs rose for raw materials and transportation.
Net income gained 14 percent to $206 million, or 22.7 cents a share in the three months ended June 30, from $181 million, or 19 cents, a year ago, the Sydney-based company said. Sales at Rinker, which makes 80 percent of its profit in the U.S., increased 18 percent to $1.46 billion.
Rinker shares have fallen 33 percent from their April 26 record, extending the drop after D.R. Horton Inc., the No. 2 U.S. home builder, last week said higher mortgage rates are eroding housing demand and profit. Rinker Chief Executive Officer David Clarke is raising prices for crushed rock used to make concrete and asphalt as diesel and cement costs climb.
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Rinker's Profit Growth Slows on Waning Housing Demand (Update8)
July 18 (Bloomberg) -- Rinker Group Ltd., Australia's biggest building materials maker, posted its slowest profit growth in three years as U.S. housing demand waned and the cost of transport and raw materials rose. The stock fell.
Net income gained 14 percent to $206 million, or 22.7 cents a share in the three months ended June 30, from $181 million, or 19.3 cents, a year earlier, the Sydney-based company said today. Sales at Rinker, which makes 80 percent of its profit in the U.S., increased 18 percent to $1.46 billion.
Rinker shares have slumped 36 percent from an April 26 record, extending the drop after D.R. Horton Inc., the No. 2 U.S. home builder, last week said higher mortgage rates are eroding housing demand and profit. Rinker Chief Executive Officer David Clarke is raising prices for crushed rock used to make concrete and asphalt as diesel and cement costs climb.