- James Hardie Industries (JHX) shares are in the green today after releasing positive third-quarter results for the 2021 financial year
- The building material company has reported a 59 per cent rise in adjusted net operating profit after tax to US$123.3 million (nearly A$160 million)
- The rise is due to strong demand for the company’s fibre cement products amid a booming global housing industry, particularly in the U.S.
- JHX now expects its 2021 fiscal year net operating profit after tax to be between US$440 million (A$570 million) and US$450 million (A$ 583 million)
- Additionally, the company has also announced a special dividend of 70 cents per share
- On the market today, JHK is up 0.81 per cent and is trading at $41.08 per share
James Hardie Industries (JHX) shares are in the green today after releasing positive third-quarter results for the 2021 financial year.
The building material company has reported a 59 per cent rise in adjusted net operating profit after tax to US$123.3 million (nearly A$160 million). The rise is due to strong demand for its fibre cement products from a booming housing industry worldwide, particularly the United States.
Lower mortgage rates have helped the U.S. housing market during the COVID-19 pandemic, allowing more people to move from the city to suburban areas.
JHX saw its global net sales up 20 per cent to US$738.6 million (approximately A$957 million), with the biggest earner being the North American business which reported a 39 per cent rise in earnings before interest and tax to US$155.6 million (around A$201 million).
Notably, this is JHX’s seventh consecutive quarter with positive financials.
The group’s management is now expecting the 2021 fiscal year net operating profit after tax to be between US$440 million (around A$570 million) and US$450 million (roughly A$583 million), compared to the previous US$380 million (around A$492 million) and US$420 million (roughly $544 million).
The world’s biggest maker of fibre cement products has also announced a special dividend of 70 cents per share and says dividend payments will be on a regular basis for FY22, after suspending dividends back May.
“I am pleased with these record results, underpinned by excellent execution of our business transformation that we began in calendar 2019, combined with increasing demand for our premium-quality James Hardie brand products and solutions,” CEO Dr Jack Truong said.
“The transformation we undertook: (i) to unlock capacity and increase efficiency in our global manufacturing network through LEAN initiatives and (ii) to better integrate our supply chain with our customers, continues to deliver consistent market share gains and the ability to serve our customers seamlessly around the world,” he added.
On the market today, JHK is up 0.81 per cent and is trading at $41.08 per share at 12:26 pm AEDT.