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.

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