Sharechat Logo

James Hardie posts drop in earnings on US housing slump

Monday 17th November 2008

Text too small?
James Hardie Industries, the biggest seller of home siding in the US, posted a 26% slump in second-quarter earnings, reflecting the housing slump in America. It canceled its first-half dividend.

Operating profit excluding foreign exchange benefits to its asbestos liabilities, fell to US$36.2 million, or 8.4 cents a share, in the three months to September 30, from $49.2 million, or 11 cents, a year earlier, the company said in a statement to the ASX. Sales fell 12% to US$342 million.

The US housing recession is eroding earnings at companies including Fletcher Building amid rising foreclosures and lack of credit for mortgages. New home starts are forecast to fall to the lowest level since records began in 1959 last month, according to a Bloomberg survey. The Commerce Department releases the figures on November 19.

"The US housing market continued to decline sharply during the quarter," said chief executive Louis Gries. "Pricing has remained reasonably flat," he said.

Shares of James Hardie dropped 9% to A$4.31 on the ASX, bringing their six-month decline to 19%. On the NZX, Fletcher Building fell 1.9% to $5.66.

James Hardie this month called a temporary halt to production from plants at Fontana, California and Summerville, South Carolina, reducing capacity in anticipation of a shortfall in demand.

Net income at the building products company jumped to US$153.5 million from $19.1 million in the latest three months, mainly reflecting the decline of the Australian dollar against the US dollar, it said.

By Jonathan Underhill



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Property for Industry Limited (NZX: PFI) Strong Valuation Outcome, Penrose Acquisition
3rd December 2021 Morning Report
Fonterra Shareholders Fund (NZX: FSF) Fonterra provides Milk Price, earnings and Q1 update
Kiwi Property Group Limited (NZX: KPG) Signs Sale and Purchase Agreement with IKEA
2nd December 2021 Morning Report
The New Zealand Refining Company Limited (NZX: NZR) Launches Share Purchase Plan
Seeka Limited (NZX: SEK) Confirms Market Guidance
Australia and New Zealand Banking Group Limited (NZX: ANZ) Acknowledges Class Action Proceedings
1st December 2021 Morning Report
Livestock Improvement Corporation Limited (NZX: LIC) Appoints New Chief Executive