James Hardie has revised its full-year sales and earnings guidance upwards after reporting second-quarter net sales of $US1.29 billion, a 34 per cent increase year-on-year. This growth was partly driven by the acquisition of Azek and sustained performance in its outdoor living division. James Hardie specialises in fibre cement products and systems for residential and commercial construction. The company is a leading manufacturer of building materials, globally.
Despite the revenue growth, operating income experienced a sharp decline, falling 84 per cent to $US24 million. This decrease was attributed to reduced utilisation rates within its North American siding and trim operations, which impacted margins. However, adjusted EBITDA saw a 25 per cent rise, reaching $US330 million.
According to James Hardie chief executive Aaron Erter, the results align with the update provided earlier in October. He acknowledged the ongoing challenges in the market, emphasising the need for adaptability and a focused approach. In Australia and New Zealand, revenue decreased by 10 per cent to $US133 million, while operating income increased to $US38 million due to manufacturing efficiencies and cost reductions following the closure of the Philippines plant.
James Hardie’s updated outlook anticipates net sales for siding and trim to range from $US2.925 billion to $US2.995 billion, an increase from the previous forecast of $US2.675 billion to $US2.850 billion. The forecast for deck, rail, and accessories was also raised. The company now projects total adjusted EBITDA to be between $US1.2 billion and $US1.25 billion, up from the earlier range of $US1.05 billion to $US1.15 billion.
