Strong housing market boosts Boral

Shares in Australian construction materials firm Boral have risen to a four-year high, following strong construction activity in the country.

In its half year results, to December 31, 2016, the company announced its net profit had risen 12.3% to A$153.4 million (US$117.8 million), from the same period in the previous year.

The rise came despite a fall in revenue of 4.6%, to A$2.09 billion (US$1.6 billion).

Boral said the revenue drop was due to the completion of a number of large projects and accounting issues relating to a joint venture in the US.

The jump in the company’s profit comes as continuing strong housing market in Australia has resulted in a rising demand for its materials.

Boral’s CEO, Mike Kane, said, "The whole market has been amazed at the strength of the housing market. I expect it to stay at lofty levels in the next couple of years."