Strong Performance of SGH's Boral Business Covers Energy and Coates Weakness
SGH's industrial equipment businesses, WesTrac Australia and Coates, provide solid revenue and cash flow via exposure to the local government, civil construction, and mining sectors. Wholly owned building products and construction materials business Boral adds to the infrastructure thematic and comes with developable property. Demand for mining services equipment is a major determinant of earnings. This is an advantage given government predilection for stimulus via infrastructure investment. A 30% stake in Beach Energy provides a growing energy exposure with leverage to oil and gas prices, while a 20.1% shareholding in Southern Cross Media comes with domestic television, newspaper, and magazine interests.
United States