Rinker’s management will be hoping that a 16% increase in half-year earnings per share to US$45.3 cents keeps shareholders distracted from the current hostile takeover bid from Mexican rival, Cemex.

Overall, it was another good result from the building materials company, which has been enjoying the housing boom in the United States. Net profit was US$410.4m and a 60%-franked dividend of 16 Australian cents per share was declared. But with the US housing market finally coming off the boil, Rinker will find it hard to maintain this performance, and it has already announced that second-half earnings are likely to be at the lower end of its previous forecast range of US39–45 cents.

We’re not big fans of Rinker at this price, but because of the takeover bid we’ll retain our recommendation from issue 212/Nov 06 (Hold – $18.60). HOLD.