James Hardie Q2 sales up 23%
James Hardie will discontinue its window business and multiple contour trim line.
Building products manufacturer James Hardie posted group net sales of $644.6 million for its second quarter 2019, up 23% from the second quarter of 2018.
The company also posted sales of nearly $1.3 billion for the first half of 2019, a 25% increase. James Hardie said North American fiber cement segment volume increased 5% for both the quarter and first half of 2019.
James Hardie reported a net operating profit of $80.9 million for the quarter, up 7%, and $160.8 million for the half year, up 17%, compared to the corresponding prior period.
“EBIT margin excluding product line discontinuation expenses of 22.8% and 23.8% for the quarter and half year, respectively, remain within our target range, but continue to be pressured by the increasing market costs of raw materials and freight,” said James Hardie CEO Louis Gries.
Gries also noted that the company had conducted a detailed review of its product portfolio and business segments and will discontinue its windows business and the Multiple Contour Trim product line, while simplifying its core ColorPlus product offering.
Looking ahead, James Hardie said it expects modest growth in the US housing market to continue in fiscal year 2019. The Company forecasts new U.S. construction starts between approximately 1.2 and 1.3 million.
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