Join our daily newsletter At The Bell to receive exclusive market insights
- International building manufacturer James Hardie announced positive results for the second quarter of the fiscal year 2020 and the half-year ending on September 30 2019
- The company’s group adjusted net operating profit sat at A$143.4 million for the quarter and A$274.6 million for the half year
- Banking on the improved and stable U.S. housing market, the building mogul forecasts a full-year net operating profit f between A$494 million and A$538 million
- James Hardie also has operations in Australia, the Asia Pacific and Europe – all of which saw modest financial growth
- James Hardie’s shares are up 6.58 per cent and trading for $26.33 each
James Hardie today announced positive results for the second quarter of the fiscal year 2020 and the half year ended September 30 2019.
The company’s group adjusted net operating profit (NOPAT) sat at A$143.4 million (US$98.6 million) for the quarter and A$274.6 million (US$188.8 million) for the half-year.
Compared to the prior corresponding periods, these figures represent an increase of 22 and 17 per cent respectively.
CEO Dr Jack Truong is pleased by the company’s second-quarter performance.
“[James Hardie delivered] Net Sales and EBIT growth in local currency in all three regions: North America, Asia Pacific and Europe. It reflects our team’s continued good execution of our global strategic plan,” Dr Jack said.
James Hardie is an international building product manufacturer and specialises in fibre-reinforced cement. Operating since 1888, the company challenges the traditional construction industry by delivering innovative building products and solutions.
Group adjusted earnings before interest and taxes (EBIT) was A$195.1 million (US$134.2 million) and A$376 million (US$258.6 million) for the half-year.
The company’s North America Fibre Cement segment delivered another quarter of strong volume growth. The segment saw a volume increase of 5 per cent for the quarter and 4 per cent for the half-year.
Recent data shows the U.S. housing market is stabilising, supported by lower interest and mortgage rates.
James Hardie believes the results position the company to significantly increase investment in demand creation, customer management and customer-driven innovation.
Despite a contracting Australian housing market, the Asia Pacific Fibre Cement segment also delivered good financial results. Both net sales and EBIT grew in the quarter.
“Our Australian and Philippines businesses continued to lead the way in gaining volume growth above their underlying market growth,” Jack added.
The company expects volume from its Australian business to continue to grow above the market.
In relation to the company’s Building Products segment in Europe, the region delivered fibre cement revenue growth in Euros of 23 per cent in the second quarter and 30 per cent for the half-year.
The adjusted EBIT margin for the Europe segment was 9.9 per cent for the quarter and 10.3 per cent for the half-year. The company remains on track to deliver full-year EBIT margin accretion for the fiscal 2020 year.
James Hardie expects the full-year adjusted net operating profit to be between A$494.4 million (US$340 million) and A$538 million (US$370 million).
This is assuming that housing conditions in the United States remain consistent.
James Hardie’s shares are up 6.58 per cent and trading for $26.33 each at 11:36 am AEDT.
