James Hardie Reports Full Year Net Loss

Submitted by Jim Thesiger on 27 May, 2010 - 15:50

Manufacturer specialist James Hardie Industries N.V. (JHX), a company that operates in number countries across the globe including Australia, New Zealand and the United States has posted a net loss for the full-year after the asbestos liabilities ballooned. In a statement, the leading manufacturing company included that its loss of $US84.9 million for the 12 months ended during March where a year earlier it posted a $US136.3 million worth of net profit. By early afternoon, the James Hardie shares went down by as much as 1.4 percent to $7.05. It is to be mentioned that the US sales volume for the company went up for the first time in last four years in comparison with the earlier corresponding period.

While talking with the investors, the chief executive of the company Louis Gries stated that the company probably reached the worst level in the US housing industry. Statistics shows a 4 percent rise in US and New Zealand net sales during the final quarter hitting as much as $US 196.8 million. However, the numbers were down by 11 percent over the full year. The James Hardie chief executive also said that the recovery in US and the rate is still uncertain while costs of energy, freight and other raw materials were increasing. He termed the full year result as “better than expected” for the company as it was looking for something even worse in such market conditions.

According to Mr. Gries, James Hardie had an impressive fourth quarter in its business in the Asia Pacific region where the net sales went up by as much as 49 percent hitting $US78.1 million. The sales in the division went up by 9 percent over the year. The operating profit of the company increased to $US 133 million (excluding the corporate costs and asbestos liabilities) in comparison with the revised profit of $US 100 million of the earlier year.