James Hardie 2Q Operating Profit US$153.5 Million, Ex-Asbestos US$36.2 Million
Excluding charges to compensate victims of its asbestos products, tax and for a legal proceeding from the Australian Securities and Investments Commission, its second fiscal quarter operating profit was US$36.2 million, down 26% from US$46.5 million a year ago because of a deteriorating U.S. housing market.
The Netherlands-based and Australia-listed company had sales in the first fiscal half of US$706.9 million, down 13% from US$814.5 million a year earlier, it said in a statement.
James Hardie's earnings have been eroded as builders have curbed home construction because of tighter credit conditions, a higher inventory of new homes for sale, and weaker economic conditions. The company has been cutting costs and staff and closing plants to remain profitable.
The company said its results were significantly affected by further declines in the U.S. market, where it normally makes about 80% of its earnings and where housing starts fell 35% in each of the second quarter and the half year compared to the same periods last year earlier.
James Hardie said it was comfortable with the low end of analysts consensus range for its full-year operating profit from continuing operations of between US$95 million and US$116 million.
The company also noted significant uncertainty over U.S. housing activity, as economic conditions and markets are severely impacting consumer and business confidence.
-By Andrew Harrison, Dow Jones Newswires; 61-3-9671-4323; andrew.harrison@dowjones.com
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(END) Dow Jones Newswires
November 16, 2008 17:28 ET (22:28 GMT)
Publié le 16 novembre 2008 Copyright © 2008 Dowjones
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