The world’s biggest fiber cement products, James Hardie Industries posted a large increase in the net operating profit in the second quarter even though there will be a less activities in the US housing industry, which is slowly recovering. Authorities forecast a slow improvement to end in March this year, but its markets in the Philippines, New Zealand and Australia are improving.
James Hardie’s management keeps fingers crossed even if housing activities in the US improves because there are portions of uncertainties on the market, cost and other factors remaining weak. The company, which is known to supply cladding products for home exteriors, has reported a net operating profit totaling to $127.2M for the September quarter last year from only $51.9M in 2013.
CEO Louis Gries revealed a 66 percent jump was reflected from the higher net price sales in the Asian, European and US fiber cement industries driving the total sales up to 12 percent for the quarter and for the second half of the year that was. However, US housing markets are slowly moving than they have expected for the start of 2015, he added.
According to industry analysts, the company’s forecasted net operating profit for the full fiscal year, excluding compensation cost for asbestos, would be up to $223M, although the company itself expected up to $235M of net operating profits versus 2014.