James Hardie shares slid yesterday despite a better than forecast half-year result and a decision to restore dividends in 2021.
The shares lost 6% to end at $36.21, despite better than expected earnings and the move to return to a dividend-paying stance.
The shares had closed Monday at a record-high $38.35.
Adjusted net operating profit for the half-year ended September 30 came in at $US209.8 million, up from the $US188.8 million a year ago.
James Hardie said it will reinstate an annual ordinary dividend for fiscal (March 31) year 2021 and plans to reduce gross debt by $US400 million at the same time
It was the sharp recovery in the US homebuilding market (thanks to ultra low-interest rates, as is the case in Australia) that lifted earnings for the September 30 second quarter.
Earnings before interest and taxes for North America fibre cement segment, the biggest driver of the company’s profit, rose 17% in the first half.
The company reaffirmed its forecast for 2021 underlying net operating profit after tax of between $US380 million and $US420 million.
That would be up from 2019-20’s $US352.8 million.
