Seven Group has improved first-half earnings and is banking on its larger stake in Boral to deliver better full-year figures.
The Ryan Stokes-run company, which spans earth-moving machines, energy and media, on Tuesday posted a 21 per cent increase in net profit of $302 million on a continuing operations basis.
Seven Group's acquisition of a 69.6 per cent stake in Boral during the six months inflated the statutory measure of profit by 235 per cent to $1.2 billion.
The equipment hire and earth-moving businesses, Coates Hire and Westrac, delivered most of the money and were consistent performers.
Coates improved earnings by 13 per cent and Seven Group claims it can capitalise on the post-lockdown economic rebound.
Westrac earnings slipped by less than one per cent. This was due to a shift in product mix and a drop in parts prices.
Yet Seven's stranglehold of building materials supplier Boral has the most potential for shareholders.
Boral is expected to improve second-half earnings after east coast lockdowns last year delivered a $33 million hit to earnings.
Boral recently sold its US operations and domestic timber and roofing businesses as part of a refocus on Australia. The sales delivered $3 billion to shareholders.
Higher energy prices aided by the Ukraine standoff could help the Seven-owned Beach Energy.
Beach improved first-half earnings by 86 per cent due to raised energy prices.
The Seven West Media business, which includes the TV network and The West Australian, improved earnings by 33 per cent.
Seven Group's 30 per cent share of Seven West means the latter contributes least to earnings.
Billionaire Kerry Stokes retired from the board last year after 11 years as executive chairman.
He remains chairman of Seven West Media.
Investors will receive a fully franked interim dividend of 23 cents per share. This is the same payout as last year.
Seven shares on the ASX were down three per cent to $21.62 at 1550 AEDT.
