James Hardie misses Q1 forecasts amid 'challenging' market
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The news: Building materials manufacturer James Hardie fell short of forecasts in the first quarter, but reaffirmed its full-year guidance, as net income lowered year on year amid a "challenging market environment".
The numbers: James Hardie reported net sales of USD991.9 million ($1.51 billion), up 4% year on year but below average forecasts of USD994.2 million. Net income lowered 2% compared to the prior corresponding period to USD155.3 million, short of consensus expectations of a 4.6% increase, according to forecasts polled by Visible Alpha.
Earnings before interest and taxes edged up 1% to USD235.4 million, with an EBIT margin dropping 0.8 percentage points to 23.7%.
There was a mixed picture across James Hardie's businesses, as fibre cement net sales increased 5% in North America primarily due to a higher average net sales price, but decreased 2% in Asia Pacific due to a drop in volumes and weak market demand in Australia.
The context: The Dublin-based company, which is dual-listed on the ASX and New York Stock Exchange, said it expects the North American market for exterior products to be "down low to mid-single digits" over the course of the fiscal year, with the market backdrop "particularly challenging during our fiscal second period".
What they said: James Hardie CEO Aaron Erter said: "I am confident in our ability to deliver on our strong value proposition, which garners even greater appreciation from our customers in a challenging market environment".
"Our solid first quarter results, coupled with our continued execution against our strategic priorities underpins our confidence in reaffirming our full year guidance."
The source: ASX announcement
