Hot Shares Boral Ltd (BLD)

Boral Ltd BLD ASXBoral Ltd (BLD) provides building and construction materials in Australia, where it is the country’s largest supplier, as well as across the US and Asia.

BLD has been one of the hot shares since December, rising from around $4.50 to be currently trading around $5.10.

On 9 February, BLD reported a 28% growth in 1H11 net profit to $94 million, driven by a 4% increase in revenue to $2.4 billion.

Core earnings at BLD’s building products division was up 22%, with improvements in operational efficiency and strong market demand offset by the impact of wet weather.

The cement division saw a similar rise in earnings, with a 7% decline in volumes compensated by improved pricing.

Boral said the rebuild of Queensland may have a favourable impact on 2H11 earnings, with the full year result expected to be between $160 million and $175 million.

BLD declared an interim dividend of 7.5 cents, up from 7 cents a year earlier.

BLD shares soared 8.9% on the day of the announcement, making it one of the best performers in the Australian share market.

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