Quite a contrast between the weak result and dividend suspension by Boral and the James Hardie which handed out the goodies to shareholders.
Hardie has reinstated dividends, announced a special dividend, and increased its full-year earnings guidance its report Tuesday for the December quarter and the nine months ending December31.
The company said it now expects full-year net profit from ordinary activities after tax (NPOAT) to be between $US440 million and $US450 million for the year to Match 31, a rise of 7% and possibly around $US100 million more than the post-tax profit of $US352.8 million in 20219-20.
The company’s adjusted net operating profit rose to $US123.3 million for the quarter ended December 31 from $US77.4 million a year earlier.
Global net sales rose 20% for the quarter to $US738.6 million.
Hardie declared a special dividend of 70 US cents a share, and said it was planning to resume paying dividends on a regular basis in 2021-22 after suspending them in May, 2020.
Directors said in Tuesday’s announcement that it intends that a first half fiscal year 2022 dividend is to be declared mid-year.
James Hardie’s North American business, its biggest earner with earings before interest and tax of $US155.6 million for the quarter, up 39% from the final quarter of 2019.
Shares in James Hardie rose 1% to $41.17 at the close on Tuesday.
Hardie CEO, Dr. Jack Truong, said in Tuesday’s statement, “Our business accelerated considerably during our fiscal third quarter, marking the seventh consecutive quarter that our global team has delivered growth above market with strong returns.”
“We delivered strong organic growth around the world, with each operating region contributing meaningfully to Global Net Sales up 20% and an even more impressive 57% increase in Global Adjusted EBIT.
“The 530 basis point improvement in our Global EBIT margin to 22.7% was outstanding, and a testament to our strategy to augment our profit trajectory in each region, particularly in Europe,” he added.
