Australia's CSR Ltd has warned its Viridian glass division will be a continued drag on earnings in the year ahead, even after a reorganisation and a $196 million provision booked in the latest financial year.
As a result, the glass division will see an ‘improved result’ this financial year, but with the full benefits of the restructuring, and associated job losses, not to be seen until fiscal 2015.
CSR posted a net loss of $146.9 million for the year to March, reversing the profit of $76.3 million earned a year earlier.
CSR said it expected a slight improvement in the housing market this financial year, following a difficult year, particularly in the key Victorian market which slumped 13% after three years of growth, it said.
This was in contrast to the 1% rise in NSW and the 10% bounce in Queensland, although off a low base.
The Viridian glass division posted a pretax loss of $38.8 million, double the year earlier loss.
The consolidation of Victorian glass operations at Dandenong has seen 37 jobs cut, while in NSW a similar move will see 170 jobs lost.
