Boral earnings continue to fall

BUILDING products maker Boral says its earnings continue to be weaker than expected because of a slump in housing construction.

Earnings from Boral's construction materials and cement division in the three months to March 31 were $19 million below the company's forecasts, Boral said on Monday.

The news sent Boral shares tumbling when the market opened, losing 18 cents, or 3.9 per cent, to be worth $4.49 at 1032 AEDT.

The fall in earnings was caused by weaker building activity in Victoria, delays to projects in Victoria and South Australia, and poor weather in southeast Queensland, Boral said.

The company expects some of that shortfall in earnings to be offset by higher revenue from work associated with liquified natural gas projects in Queensland and Western Australia.

Boral's cost-cutting measures, which includes 700 job cuts, were also expected provide a rise in overall earnings over the financial year, it said.

The company said it expects to make a net profit of between $90 million and $105 million in the year to June 30, excluding costs related to its restructure.

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