CSR sees housing construction uplift

Building products supplier CSR says its outlook is positive as housing starts look to climb to record levels.

With more than 200,000 starts expected in fiscal 2016, CSR hopes strong demand for products continues over the next few years.

CSR managing director Rob Sindel told shareholders at the company’s annual meeting an increasing number of people wanted to live closer to where they worked, which was fuelling demand for multi-residential housing closer to city centres.

The sector now represented around 45% of all Australia’s new dwellings.

AAP reported Rob Sindel saying CSR’s brick-making joint-venture with Boral expected to generate initial overhead savings of $7 million to $10 million a year once the two businesses were fully integrated.

Deutsche Bank upgraded CSR to a "buy" recommendation given housing start projections, even after adjusting for reduced multi-family product intensity.