James Hardie Announces Adjusted Net Operating Profit of US$80.9 Million for Q2 Fiscal Year 2019 and US$160.8 Million for the Half Year Ended 30 September 2018

James Hardie today announced results for the second quarter of fiscal year 2019 and the half year ended 30 September 2018:

• Group Adjusted net operating profit of US$80.9 million for the quarter and US$160.8 million for the half year, an increase of 7% and 17%, respectively, compared to the prior corresponding periods (“pcp”);
• Group Adjusted EBIT of US$106.9 million for the quarter and US$214.0 million for the half year, an increase of 1% and 10%, respectively, compared to pcp;
• Group net sales of US$644.6 million for the quarter and US$1,295.6 million for the half year, an increase of 23% and 25%, respectively, compared to pcp;
• North America Fiber Cement Segment volume increased 5% for the quarter and half year, compared to pcp;
• North America Fiber Cement Segment EBIT margin excluding product line discontinuation expenses of 22.8% for the quarter and 23.8% for the half year;
• Asia Pacific Fiber Cement Segment EBIT margin of 23.4% for the quarter and 23.8% for the half year;
• Europe Building Products Segment Adjusted EBIT margin excluding costs associated with the acquisition of 9.7% for the quarter and 10.9% for the half year; and
• The Fermacell acquisition closed on 3 April 2018 and is included in the financial results for the first half of fiscal year 2019.

CEO Commentary

James Hardie CEO Louis Gries said, “Our North America Fiber Cement Segment delivered good top line growth of 9% for the quarter and 10% for the half year, respectively. Volume increased 5% for both the quarter and half year, with our exteriors business continuing to grow modestly above our addressable market. Additionally, EBIT margin excluding product line discontinuation expenses of 22.8% and 23.8% for the quarter and half year, respectively, remain within our target range, but continue to be pressured by the increasing market costs of raw materials and freight. We anticipate this inflationary pressure against our key input costs will continue through the rest of the year. Furthermore, while primary demand growth improved in the second quarter, our focus remains on continuing to build momentum and delivering a higher primary demand growth in fiscal year 2020.”