Building and mining products provider Alesco Corporation Ltd (ASX:ALS) has posted an 82 per cent decline in net profit to $1.76 million for the six months to 30 November 2010. This compares with $9.71 million in the previous corresponding period.

Chief executive Peter Boyd said in a market briefing that the impact of floods in Queensland, NSW and Victoria in December 2010 and January 2011 was still being assessed.

"But our view, based on January trading to date, is that our quarter-three sales and earnings will be negatively impacted,'' he said.

"I think in the longer term, rebuilding efforts will be a positive for Alesco around sales and earnings.

"But the timing of that recovery is somewhat uncertain.''

Wet weather had hit the company's water division, particularly in Queensland. In the first half, revenue for this division slumped 12 per cent due to the impact of above-average rainfall in the eastern states over the period.

The industrial brands manufacturer announced it has inked a deal to sell its Water Products and Services division for about $20 million to funds managed by Anchorage Capital Partners Pty Ltd. The company said it will use the proceeds of the sale to repay debt.

Shares in Alesco were seven cents higher at $2.97 at 1.18pm today.