James Hardie Industries Plc (ASX: JHX) is a world leader in manufacturing fibre cement siding and backerboard.
During the fourth quarter of the fiscal year 2019, the company’s North America Fiber Cement segment delivered solid revenue growth while generating good EBIT margins within the company target range in a challenging input cost environment. Besides this, the company’s Asia Pacific Fiber Cement segment reported excellent top line growth of 7% and 11% in the fourth quarter and the full year, respectively. The company’s Europe Building Products segment also delivered strong pro-forma revenue growth in Euros of 7% with an Adjusted EBIT margin of 10.6% for the full fiscal year.
In the fiscal year 2020, the company is expecting to see modest growth in the US housing market. The company is expecting its North America Fiber Cement segment EBIT margin to be in the top half of the company’s range of 20% to 25% for the fiscal year 2020.
The company is expecting that its addressable underlying market will decrease in fiscal year 2020 compared to the fiscal year 2019. Further, the company expects its Europe Building Product segment to achieve year on year net sales and EBIT margin growth.
Net sales for the quarter and full year increased 19% and 22%, respectively, from the prior corresponding periods to US$624.8 million and US$2,506.6 million, respectively. The net sales were favorably impacted by the acquisition of Fermacell in Europe and higher net sales in the North America Fiber Cement segment. The Net sales for the quarter were also driven by the higher sales volumes and a higher average net sales price compared to prior corresponding periods.
Besides this, the company reported gross profit of US$210.6 million for the quarter and US$831.0 million for the full year increased by 10% and 14%, respectively. For the full year ended 31 March 2019, the company reported adjusted net operating profit of US$300.5 million, up 3% on pcp.
Financial Summary (Source: Company Reports)
The company has declared a dividend of USD 0.2600 on Chess Depositary Interests 1:1 in relation to the period of six months ended 31 March 2019. The dividends will be paid on 2 August 2019. The company recently appointed highly experienced Dr. Jack Truong as the new CEO, making a significant contribution to the company’s Management team.
Now, let’s have a glance at the company’s stock performance and the return it has posted over the past few months. The stock is trading at a price of $18.540, up by 3.982% during the day’s trade with a market capitalisation of ~$7.97 billion as on 21 May 2019. The counter opened the day at $17.900 and reached the day’s high of $18.700 and touched a day’s low of $17.730 with a daily volume of ~ 993,027. The stock has provided a year till date return of 19.58% & also posted returns of 14.37%, 0.22% & -6.21% over the past six months, three & one-month period respectively. It had a 52-week high price of $23.900 and touched 52 weeks low of $14.380, with an average volume of ~1,628,912.