James Hardie Industries has posted a full year 2010 net loss of $US84.9 million ($A102.9 million), after reporting an improvement in fourth quarter operating income.
The group said it expects to be able to deliver good returns in the current market conditions.
Hardie said the net loss for the year to March 31, 2010 included the impact of asbestos costs, tax adjustments and expenses from the Australian Securities and Investments Commission legal proceedings over the conduct of former directors.
No dividend was declared, the company said in a statement.
James Hardie said full year net profit increased 32% to $US133 million after stripping out the impact of the ASIC and asbestos costs and tax adjustments.
The result included asbestos adjustments of $US24.2 million for the March quarter and $US224.2 million for the full year, which the company said was attributed mainly to the stronger Australian dollar.
Full year sales fell 6% to $US1.124 billion, the company said.
Hardie reported a US$23.7 million net operating profit, excluding asbestos, ASIC expenses and tax adjustments, for the quarter ended March 31.
"This represents an increase of 208% compared to the corresponding quarter of last year.
"The net operating result for the fourth quarter including asbestos, ASIC expenses and tax adjustments was a loss of US$2.3 million, compared to a loss of US$129.6 million for the corresponding quarter of last year.
"Full year net operating profit excluding asbestos, ASIC expenses and tax adjustments increased 32% to US$133.0 million from US$100.5 million for the prior year.
"Including asbestos, ASIC expenses and tax adjustments, full year net operating profit moved from US$136.3 million to a loss of US$84.9 million.
"Earnings before interest and tax (EBIT), including asbestos and ASIC expenses, fell to a loss of $US21 million in 2010, from $US173.6 million during the previous year.
"US sales improved in the March 2010 quarter as well as new housing construction activity," Hardie said.
While market analysts expect the US housing market to improve in 2010/11, severe challenges remained, including tight credit conditions, weak employment conditions and more foreclosed homes.
"Asia Pacific markets are likely to be "somewhat better" in 2010-11 than the previous year, but higher commodity prices were expected to push the company’s operating costs higher.
"Despite higher costs, the company expects to deliver good financial returns in current market conditions, and at the same time increase spending on long-term product and market initiatives," James Hardie said.
Looking to the future, Hardie said that new housing construction activity in the US improved in the quarter with the US Census Bureau reporting that the number of single family unit starts in the quarter to March 2010 were 9.2% higher than the preceding December quarter and 46% higher than the March 2009 quarter.
"Analysts remain confident that the US housing market will continue to improve in fiscal year 2011.
"However, severe challenges remain, including constrained credit conditions that are restricting the availability of finance for prospective buyers and developers, a weak employment market, and a continuing supply of foreclosed homes.
"Asia Pacific markets that James Hardie participates in are likely to be somewhat better in fiscal year 2011 than in fiscal year 2010.
"Operating costs are expected to be higher as market demand drives upward pressure on basic commodity prices."
The company said that despite these higher costs, "it expects to deliver good financial returns in current market conditions and at the same time increase spending on long-term product and market initiatives".
Hardie shares fell 4c to $7.11.
Shares in Ausenco plunged yesterday after the mining services group surprised with a loss warning.
The company told the market yesterday that it expected a first half net loss of between $9 and $13 million.
"This projected result includes an office closure and surplus lease provision of up to $7.5 million, pre-tax, but does not include any intangible impairment losses that might be assessed following the current review," the company said.
"Compared with the second half of 2009, Ausenco has experienced lower first half EBITDA and cash flows as a result of later than anticipated project commencements, relatively higher comparable foreign exchange rates and lower than historic resource utilisation rates.
"In addition, higher tender related costs and resource capacity holding costs increased the Group’s comparable cost base.
"This has resulted in a significantly lower 2010 first half earnings result.
"Reported net profit after tax for the 2010 full year is projected to be between $13 and $18 million," which would indicate the company still sees a significant second half rebound.
"The Group expects 15% to 20% revenue growth in the second half of 2010, largely the result of utilising existing resource capacity to deliver secured projects and optimising the performance of underperforming offices.
"The realisation of benefits from the various initiatives taken an
