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James Hardie's first-half earnings increased 17% but was trimmed down over the full-year forecast period due to uncertain conditions in his key US market.
Adjusted operating income, which excludes non-recurring items, such as compensation for persons suffering from asbestos-related illness, was $ 160.8 million ($ 211 million). ), compared to 137.3 million USD a year ago.
The world's largest fiber-cement producer, said Thursday that it now expects an adjusted operating profit of $ 280 million to $ 320 million, down from previously forecast $ 300 million. between US $ 300 million and US $ 340 million.
Strong economic growth in the United States, its largest market, helped support growth.
However, the underlying trend suggests a weakening real estate market, in a context of rising mortgage rates and housing prices, despite a slowdown in August after two consecutive months of decline.
Although US real estate activity is improving, market conditions remain uncertain and input costs remain volatile, the company said.
"We anticipate that this inflationary pressure on our major input costs will continue for the rest of the year," said long-time general manager Louis Gries, who will be replaced by Jack Truong, president of international activities. of the company, by the end of 2019 fiscal year.
The housing market in the United States could still fall behind if the Federal Reserve paves the way for a further rise in interest rates over the next year, in addition to the likely rate hike in December.
The Irish-based company reported net sales of $ 1.30 billion for the six-month period, up from $ 1.03 billion a year ago.
In addition to the United States, the company is also present in other countries, including Australia, New Zealand and the Philippines.
James Hardie declared a semi-annual dividend of 10 cents US per share.
Originally published as James Hardie to increase profits of HY and reduce prospects
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