CSR drops strong hint for break-up of 'historical' divisions

The diversified CSR group, Australia, has given its strongest indication yet it is considering a demerger of its corporate structure to create separate businesses in building materials, sugar and aluminium.

CSR's building products division, which includes glass businesses Pilkington and DMS Glass bought last year for $865 million, had EBIT of $74.8 million, up 13% on last year.

Its enlarged glass business, Viridian, boosted pre-tax earnings by $25.1 million while on a like-for-like basis EBIT for building materials fell 7% primarily on increased input costs of energy and related raw materials in a declining housing construction market.

"While our Viridian glass business is also subject to the residential building slow-down, we are achieving maintainable synergies at a faster rate and above our initial targets," said Jerry Maycock, managing director.

He said there was increasing consumer interest in Viridian's energy-saving glass, according to a Nov. 5 theage.com.au report.