James Hardie has upgraded guidance on strong growth expectations across North America, Asia Pacific and Europe for the current 2021-22 financial year which ends on March 31 next year for the company.
The company reported a 35% increase in sales to $US843.3 million ($A1.15 billion) for the June quarter and a net profit of $US121.4 million ($A165 million).
“I am very pleased that this first quarter marked our ninth consecutive quarter of delivering growth above market and strong returns,” CEO Dr Jack Truong said in the statement to the ASX.
No dividend but the company again said they will resume in November when the interim results are announced.
The company said that, based on the continued strong execution of the global strategy across all three regions and the expectation for continued residential and market growth in the USA, the Company is raising its guidance for fiscal year 2022, ending March 2022.
James Hardie now expects its Adjusted Net Income to be between $US550 million and $US590 million, compared to the prior range of $US520 million and US$570 million.
Adjusted Net Income was $US458 million in the 202021 financial year (to March 31).
James Hardie said the 35% of its quarterly sales revenue growth came from a 25% lift in sales volumes and 10% came from the company’s strategy to concentrate on higher value products and win price rises.
Hardie’s results again underline its success in the US while companies such as Boral have made a hash of their move across the pacific in building products (twice in Boral’s case in the past two decades).
Boral is selling off its US businesses, which have proven to be a disaster for the group, to refocus on its Australian building products business. The US failure exposed Boral to takeover and Kerry Stokes’ Seven Group Holdings pounced and won control.
Hardie shares finished 2.9% higher at $49.32 and a new high.
