Solid performance in Florida, Arizona, and other Rinker Materials Corp. markets prompted Rinker Group to announce higher than expected financial results — EBIT (earnings before interest and taxes) of US$500 million on sales of about US$3.7 billion — for the fiscal year ended March 31. EBIT gains for 2004 are projected to be 46% to 48% and 20%, respectively, above comparable 2003 figures for Rinker Materials and Australian unit Readymix.

In an April 8 announcement, Rinker Chief Executive David Clarke attributed the improvement primarily to a strong fourth quarter for Rinker Materials, which accounts for nearly 80% of Group revenue. An US$8 million gain from the sale of the Polypipe business helped spur Rinker Materials' nearly 90% EBIT increase during the January-March 2005 quarter versus the same period last year. That divestment followed the December 31 sale of Rinker Materials' seven-plant prestressed business.

Rinker Group's numbers have not been lost on Wall Street. Since the company set up an American depository receipt facility for New York Stock Exchange trading in October 2003, shares have climbed from US$43 to a (current 52-week) high of $US94. Through mid-April, shares were hovering around US$90. In the year ahead, Clarke projects an EBIT improvement of 15% for U.S. operations, with the Australian business holding steady.