Boral predicts $22m profit drop

Australia’s largest building materials company has downgraded its guidance for full-year net profit by $22 million.

Boral told the ASX today net profit after tax for the first quarter of 2012 was $22 million below its forecast.

“This reduction relates to continued heavy rain and lower residential housing activity on the east coast of Australia, particularly in Queensland and New South Wales,” the company said.

Boral had forecast a net profit, before significant items, of between $150 million to $175 million for the year to June 30.

“The United States and Asian results remain broadly in line with expectations and their improved final quarter remains within reach,” the company said.

Boral (ASX:BLD) was down 3.15% on the news, to be trading at $3.69 this morning.