A rise in house and apartment construction has helped CSR return to profit, and it expects demand for its building products to continue to grow.
CSR makes 70 per cent of its revenue from residential construction, and work on new homes had picked up in the six months to March, Managing director Rob Sindel said.
"NSW continues to be strong and the other states are recovering ... we are seeing a more broad-based recovery," he said.
Approvals for the construction of free-standing homes and apartment blocks continue to grow, and this should translate to increased demand for CSR products - such as plasterboard and insulation - over the next few years, Mr Sindel said.
CSR made a profit of $88.1 million in the year to March 31, an improvement on a loss of $150 million in the previous year, in which it carried out a costly restructure.
Revenue grew four per cent to $1.75 billion, while earnings from its building products business increased 20 per cent to $93 million.
Mr Sindel said the company was focussed on increasing its involvement in the growing apartment market, which would be the target of any acquisitions.
"There is nothing imminent at the moment, but our objective is to get higher exposure to multi-residential and also addressing the issues of speed and ease of construction," he said.
CSR shares rose slightly soon after it released its annual results, but by 1540 AEST were down 17.5 cents, or five per cent, at $3.335.
CMC Markets chief market analyst Ric Spooner said investors were probably locking in profits after a strong run by CSR shares so far in 2014.
"CSR stocks have had a stellar run and now that the company has performed to expectations it appears quite a few people have chosen to sell it," he said.
The company also offered no specific financial guidance for the 2014/15 fiscal year.
Share
