James Hardie shares rocket on Q2 update
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More news: Shares in building products maker James Hardie have soared after the company posted strong quarterly figures. JHX shares were trading 13.1% higher at $46.68 at 2pm AEDT, after the company posted a record operating profit of US$178.9 million ($277.8 million) despite a drop in sales volume.
James Hardie lifts second-quarter profit
The news: Higher prices and lower costs have helped building products manufacturer James Hardie post a record profit, despite a dip in second-quarter sales volumes.
The numbers: Global net sales for the three months to 30 September were marginally higher at USD998.80 million ($1.55 billion) despite volumes declining amid weaker global housing markets. Operating profit after stripping out asbestos liabilities rose 2% to a record USD178.9 million thanks to stronger margins.
The context: The company expects to maintain operating profit in the third quarter in the range of USD165 million to USD185 million but said the outlook for housing markets globally remains uncertain. It expects the addressable market in its biggest region, North America, to shrink between 7% and 14% in 2023 compared with 2022. “I believe our last three quarterly results are proof points that we are accelerating through this cycle and taking share,” chief executive Aaron Erter said.
The source: ASX announcement
