This article is from the Australian Property Journal archive
BUILDING products leader James Hardie (ASX: JHX) saw a drop in in its Asia Pacific division results over the first quarter ending 30 June 2024, driven by weakened demand in Australia.
In its Asia Pacific Fiber Cement segment, net sales were down 2% to $205.3 million from $209.7 million in Q1 FY24.
The decline was driven by a 9% drop in volumes, which was partially offset by a 7% increase in average net sales price.
EBIT was at $62.5 million, down 10% from $69.5 million in Q1 FY24.
EBIT margin decreased 270 basis points to 30.4%, attributed to greater than average net sales price from favourable price and mix, which was more than offset by lower volumes, wage inflation, sales headcount and higher depreciation.
EBITDA declined 8% to $69.7 million from $75.6 million in Q1 FY24, with an EBITDA margin of 34.0% down 210 basis points.
While excluding depreciation and amortization expense, which was up 17% to $5 million, EBITDA declined -9% to $46 million.
James Hardie’s overall group net profit saw more favourable results, rising 2% to US$178 million, thanks to the stronger performance of its North American segment.
The group’s full year FY25 guidance is largely unchanged, with adjusted net income in the range of US$630 million to US$700 million.
“We continue to expect the North American market for exterior products to be down low to mid-single digits over the course of our fiscal year, and now anticipate that the market backdrop will be particularly challenging during our fiscal second quarter,” said Aaron Erter, CEO at James Hardie.
“However, despite these headwinds, we remain well- positioned to achieve full year results within the ranges we provided at the beginning of the year, and our teams are working relentlessly to leverage our strong value proposition to sustain our leading position in the industry and accelerate our outperformance as markets transition to recovery.”
