By Stuart Condie

SYDNEY--Brickworks will impair the value of its U.S. operations for the third time in less than a year after regional conditions stayed softer than the Australian brickmaker had anticipated.

The ASX-listed company on Monday said it would impair the value of its North America building-products business by 102 million Australian dollars, equivalent to US$66.6 million. It estimated the post-tax impairment at A$75 million.

It already announced more than A$100 million of post-tax impairments against the value of the North America business since July 2024, citing lower-than-expected demand and policy driven economic turmoil.

"Market conditions have remained significantly more subdued than anticipated," Brickworks said Monday. "Factors impacting the market have included continued elevated interest rates, high construction costs and suppressed consumer confidence."

Brickworks, which entered the U.S. in 2018 with the US$110 million acquisition of brick maker Glen-Gery, said it expects marginally positive North America earnings for the 12 months through July.

It recorded a A$3 million earnings loss against the unit over its fiscal first half, which ended Jan. 31.

The company expects to report second-half earnings at its domestic building-products business slightly ahead of the A$50 million seen in the first half.

Second-half property earnings will exceed the A$38 million reported for the six months through January, helped by a A$65 million revaluation gain on the industrial property trust it co-owns with Goodman. It will also record a A$39 million development profit.

Write to Stuart Condie at stuart.condie@wsj.com

(END) Dow Jones Newswires

June 29, 2025 19:25 ET (23:25 GMT)

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