In view of the North America housing boom, leading producer and marketer of high-performance fiber cement and fiber gypsum building solutions, James Hardie, reportedly revised its annual profit forecast for the fourth time this fiscal year and is anticipating even higher revenue next year.
It is to be noted that sales of newly built homes in the United States, which contribute 70% of the company’s revenue, rose month-on-month in the December quarter and this trend will likely continue. The imminent threat of higher mortgage rates is compelling builders to construct new houses and is subsequently augmenting the demand for building materials.
The Dublin-headquartered firm now expects adjusted net income to be in the range of USD 620 million and USD 630 million for fiscal 2022, up from its previous forecast of USD 605 million to USD 625 million. For the next fiscal year, it projects adjusted profit between USD 740 million to USD 820 million.
Comparing the Q3 fiscal year 2022 results with Q3 fiscal year 2021 results, James Hardie’s global net sales increased by over 22% to USD 900 million, of which, North America business unit alone contributed about USD 644.9 million, cited credible sources.
In this context, North America President, Sean Gadd, expressed that the team’s execution of the high-value product mix strategy resulted in an outstanding quarter for Net Sales and EBIT in the North American market.
The close partnerships of the commercial team with customers, focus on creating demand by marketing directly to the homeowner, and capacity addition provided by the revamping of Prattville facility puts the company in a good position to sustain growth, he added.
The company’s adjusted net income saw a 25% jump to USD 154.1 million in the December quarter, up from USD 123.3 million a year ago. Whereas, the global EBIT margin stood at 22.7%.
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