Jamies Hardie set to exceed Q1 sales, earnings guidance
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The news: Building materials group James Hardie said it will exceed its first-quarter guidance, driven by better-than-expected sales in its siding and trim division.
The numbers: The group now expects Q1 net sales of USD1.45 billion ($2.08 billion) to USD1.48 billion, compared to previous guidance of USD1.32 billion to USD1.35 billion.
Adjusted EBITDA is forecast to reach USD399 million to USD407 million, up from a range of USD354 million to USD375 million.
The context: James Hardie CEO Aaron Erter said higher siding and trim net sales reflected strong sell-through and underlying demand for products. Improved performance in the group’s deck, rail and accessories division was driven by channel inventory normalisation and sell-through that improved through the quarter, he noted.
James Hardie will release its full first-quarter results on 7 August AEST.
What they said: “We believe our performance reflects our team’s execution and growth above market, rather than a meaningful improvement in the overall US housing market,” said Erter.
“That said, we are encouraged by the positive traction from our initiatives to grow our fiber cement business, continued conversion in decking and the positive contribution from sales and cost synergies.”
The source: ASX
