James Hardie Announces Adjusted Net Operating Profit of US$90.2 million for Q1 Fiscal Year 2020

James Hardie today announced results for the quarter ended 30 June 2019:

• Group Adjusted net operating profit ("NOPAT") of US$90.2 million for the quarter, an increase of 13% compared to the prior corresponding period (“pcp”);
• Group Adjusted EBIT of US$124.4 million for the quarter, an increase of 16% compared to pcp;
• Group net sales of US$656.8 million for the quarter, an increase of 1% compared to pcp;
• North America Fiber Cement Segment volume increased 4% for the quarter, compared to pcp;
• North America Fiber Cement Segment EBIT margin of 25.1% for the quarter;
• Asia Pacific Fiber Cement Segment EBIT margin of 23.0% for the quarter;
• Europe Building Products Segment Adjusted EBIT margin excluding integration costs of 10.7% for the quarter; and
• Payment of US$108.9 million to AICF during Q2 FY20.

CEO Commentary

James Hardie CEO Dr Jack Truong said, “Our consolidated group results reflected very good performance in all three segments, with an increase in Adjusted EBIT and Adjusted NOPAT of 16% and 13%, respectively."

He continued, "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."

Dr Truong added, “Our Asia Pacific Fiber Cement segment delivered solid financial results despite a contracting Australia housing market. Our Australian and Philippines businesses led the way in gaining volume growth above their underlying market growth. Our EBIT margins were in the middle of our target range and continued to be impacted by input cost inflation."

He concluded, “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. While starting from a low base, we have begun to deliver fiber cement penetration, with fiber cement revenue growth of 37% for the quarter. Adjusted EBIT margin excluding integration costs of 10.7% is in line with our expectations and we are on track to deliver full year EBIT margin accretion for fiscal year 2020."