Australian Market Watch – James Hardie (JHX) 27 May 2010
Australian stock James Hardie (JHX) is an international building materials company and is a manufacturer of fibre cement products. It operates in the US, Australia, New Zealand and Philippines.
JHX has reported a FY10 net loss of $84.9 million, down from last year’s US$136.3 million profit, and well below analyst estimates of a US$127.7 million profit.
The result was weighed down by JHX’s ongoing asbestos claims, which increased US$224.2 million during the year, and a 6% drop in net sales that was attributable to a weak US housing market.
JHX maintained a cautious outlook, sighting the sluggish US housing market, constrained credit conditions, and a weak employment market as the key threats to earnings.
JHX did not declare a final dividend.
Australian share price for JHX last closed at $7.11, weakening since the middle of May.