Profits up at James Hardie
Building products manufacturer James Hardie reported first quarter 2020 net sales of $656.8 million, an increase of just 1% compared to the previous first quarter.
The company also posted an adjusted net operating profit of $90.2 million for the quarter, an increase of 13% compared to the same period a year ago.
North America Fiber Cement Segment volume increased 4% for the quarter, the company said.
Looking ahead, James Hardie said it expects modest growth in the U.S. housing market with new construction starts between approximately 1.2 million and 1.3 million.
###
The bottom line: First quarter sales are nearly flat for the fiber cement building products manufacturer. But operating profits increased 13%.
What the CEO said: "Our North America Fiber Cement segment delivered very good volume growth in a down market while generating EBIT margin at the top end of our target range. North America housing market demand was soft across most geographies and customer segments in the first six months of calendar year 2019. However, our exteriors business grew 5% in volume in the quarter, compared to the prior corresponding period. Our commercial transformation and implementation of lean manufacturing in our North American plants continue to progress well. We remain confident these transformations will lead to continued improvement in our ability to execute and deliver sustainable results," said James Hardie CEO Jack Truong.
“Our Europe Building Products segment delivered strong revenue growth in Euros of 7% for the quarter. We remain focused on driving sales synergies across our two core product ranges: fiber gypsum and fiber cement; and also in delivering new fiber cement products developed for the European market,” Truong added.
Company info: The first quarter 2020 report from James Hardie can be accessed here.
The company also posted an adjusted net operating profit of $90.2 million for the quarter, an increase of 13% compared to the same period a year ago.
North America Fiber Cement Segment volume increased 4% for the quarter, the company said.
Looking ahead, James Hardie said it expects modest growth in the U.S. housing market with new construction starts between approximately 1.2 million and 1.3 million.
###
The bottom line: First quarter sales are nearly flat for the fiber cement building products manufacturer. But operating profits increased 13%.
What the CEO said: "Our North America Fiber Cement segment delivered very good volume growth in a down market while generating EBIT margin at the top end of our target range. North America housing market demand was soft across most geographies and customer segments in the first six months of calendar year 2019. However, our exteriors business grew 5% in volume in the quarter, compared to the prior corresponding period. Our commercial transformation and implementation of lean manufacturing in our North American plants continue to progress well. We remain confident these transformations will lead to continued improvement in our ability to execute and deliver sustainable results," said James Hardie CEO Jack Truong.
“Our Europe Building Products segment delivered strong revenue growth in Euros of 7% for the quarter. We remain focused on driving sales synergies across our two core product ranges: fiber gypsum and fiber cement; and also in delivering new fiber cement products developed for the European market,” Truong added.
Company info: The first quarter 2020 report from James Hardie can be accessed here.