Boral Hit by Wet Weather and Commodity Inflation. We Drop Fiscal 2022 EBIT Forecast by 32%

We have lowered our full-year EBIT forecast for no-moat Boral’s continuing operations by 32% to AUD 150 million, sitting at the midpoint of management’s full-year guidance of between AUD 145 and AUD 155 million. Boral has been affected by a combination of extreme weather events across the Australian east coast and rising input costs. Heavy rainfall in New South Wales and Queensland disrupted production schedules and affected Boral’s ability to deliver products to customers. Further, rapid increases in coal and diesel prices are expected to more than offset Boral’s product price increases and hedging provisions over the remainder of fiscal 2022, crimping near-term profit margins.