James Hardie reports 6% sales increase

Building products manufacturer James Hardie reported net sales of US$525.8 million for the second quarter of fiscal 2018 and US$1.03 billion for the half of 2018 - increases of 6% for both periods compared to same periods a year ago.

The Sydney, Australia-based company also reported a net operating profit of US$73.9 million for the second quarter 2018 and US$135.6 million for the half year, a decrease of 1% and 4%, respectively, compared to the prior corresponding periods.

James Hardie reported North America fiber cement segment volume decreased 2% for the quarter and was flat for the half year. U.S. fiber cement segment net sales were nearly US$400 million for the quarter and US$791.2 million for the half year, an increase of 4% and 5% in comparison to the corresponding periods last year.

“Our North America Fiber Cement Segment results for the quarter and half year reflect top line growth of 4% and 5%, including volume growth below our market index,” James Hardie CEO, Louis Gries said in a prepared statement.

Gries also pointed to manufacturing inefficiencies and production costs, which hindered the company. “The capacity constraints which arose in the prior fiscal year dampened our demand in the first half of fiscal year 2018, despite our capacity increasing compared to the prior corresponding periods. Additionally, even though our manufacturing inefficiencies and production costs remain higher than our historic and prior corresponding period levels, they have begun to stabilize,” Gries said.

Moving forward, James Hardie will focus on increasing manufacturing capacity to drive a higher, long-term, return on capital and improving the performance of its North America manufacturing network, Gries said.

Net sales for James Hardie’s international fiber cement business increased 16% for the quarter and 12% for the half year due to volume increases in sales to the Asia Pacific markets.