Rinker Group Limited (RIN) is a focused, construction materials group, comprising Rinker Materials Corporation in the United States and Readymix in Australia and China. RIN was formed from the demerger of US based Rinker Materials Corporation as well as the Readymix and Humes businesses from CSR Limited in March 2003. Management expects RIN to be one of the top 10 heavy building materials companies in the world.

The strategy of RIN is to grow its asset base in North America. Currently 80% of revenue and earnings are derived from the US. RIN has stated it intends to spend US$200m per year on acquisition to further build its market position through consolidating the building materials market across strategic growth states within the US. The core earning driver for RIN comes from the Florida with the other key states being Arizona and Nevada. The combination of these three states represents 70% of revenue. Florida accounted for 52% of US revenues in FY05.Rinker Group reported NPAT up 50.1% from the pcp to US$740.2m for the year ended 31 March 2006. The result was driven by continuing strong growth in construction activity in Rinker's major US markets, particularly Florida, Arizona and Nevada together with higher prices and cost reduction initiatives. Revenues from ordinary activities were US$5.1Bn, up 18.5% from the pcp. Diluted EPS was 80.2 cents, compared to 52.3 cents in the pcp. The net operating cash inflow was US$942.4m, compared to an inflow of US$678.8m in the pcp. Final dividend declared was 40 cents.

30/03/06

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