James Hardie Industries (ASX:JHX) Sees Brighter Prospect, Upgrades FY2021 Guidance

James Hardie Industries (ASX:JHX) Sees Brighter Prospect, Upgrades FY2021 Guidance

Summary

  • Amid guidance withdrawal by many due to COVID-19 uncertainties, here comes a different story - James Hardie Industries plc (ASX:JHX) has upgraded its FY2021 guidance.
  • James Hardie Industries has raised the adjusted NOPAT guidance range to USD 380 million - USD 420 million from USD 330 million - USD 390 million for FY2021.
  • In Q2, JHX expects group net sales, adjusted EBIT and adjusted NOPAT to be record-breaking quarterly highs.
  • JHX has made significant progress on the LEAN manufacturing transformation, delivering premium quality products and services to the clients, globally.

 

In the pandemic era filled with uncertainty, we heard a lot about the destructive impacts of global virus crisis on businesses and economies. Initial wave was shocking for everyone, and during the first phase of lockdown, people were figuring out how to continue in the unprecedented crisis. There were questions and fears in minds. However, by now, people have adapted to the changed circumstances, and trying to return to normalcy while following the essential precautions to keep the virus at bay.

Also read: Health versus Economy: 5 things that we have learned during the crisis

That said, thankfully, there remain businesses that continued prospering amid the unprecedented crisis. To know more, read here: Good Note From COVID-19: Prospering Companies Amid Pandemic

Also read: A Glance at Stocks immune to COVID-19

Some sectors boomed all of a sudden during the crisis like technologyBNPLcryptocurrencies and e-commerce

During the onset of the pandemic, several companies withdrew their guidance amid the uncertainties. Now comes positive news from James Hardie Industries plc (ASX:JHX) of upgrading guidance for FY2021.

James Hardie Raises Guidance for FY2021

The world's leading producer and marketer of high-performance fiber cement and fiber gypsum building solutions, James Hardie Industries plc (ASX:JHX) has raised its guidance for the financial year 2021 (FY2021). At the same time, the company remains steadfast in its journey towards global transformation through continuous growth above market and strong returns. 

Full-Year and Second Quarter FY2021 Guidance: JHX has upgraded the full-year FY2021 adjusted NOPAT guidance range to USD 380 million - USD 420 million from earlier guidance of USD 330 million - USD 390 million.

Q2 FY2021 Guidance

  • Group Net Sales of USD 735 million - USD 740 million, representing an increase of approximately 12 per cent versus PCP.
  • Group Adjusted EBIT between USD 160 million and USD 165 million, up nearly 22 per cent year-on-year.
  • Group Adjusted EBIT margin of ~ 22 per cent, an improvement of around 200 bps from the same period a year ago.
  • North America Fiber Cement Segment exteriors volume increase of nearly 11 per cent on PCP.
  • North America Fiber Cement Segment Adjusted EBIT margin in the range of 28 per cent to 29 per cent.
  • Europe Building Products Segment Adjusted EBIT margin between 10 per cent and 11 per cent.
  • Asia-Pacific Fiber Cement Segment Adjusted EBIT margin of between 31 per cent and 32 per cent.

Must Read: What Pandemic? Property prices to go higher in coming years

James Hardie Industries also expects group net sales, adjusted EBIT and adjusted NOPAT to be record-breaking quarterly highs in Q2. Delivering record values in these areas was made possible by having all three operating regions provide growth above market with strong returns in Q2 FY21.

The period marks the first time that all three operating regions - North America, Asia Pacific, and Europe delivered substantial financial results concurrently. It is the sixth consecutive quarter when JHX has delivered growth above market with strong returns.

Additional Q2 FY21 Guidance includes Asia-Pacific Fiber Cement Segment Net Sales growth of around 4 per cent in the local currency. Europe Building Products Segment Net Sales growth of about 8 per cent in the local currency. At 30 September 2020, the company expects liquidity of approximately USD 890 million, an improvement of nearly USD 190 million from 30 June 2020.

James Hardie's Ongoing Transformation: JHX has made significant progress on the LEAN manufacturing transformation, allowing the company to consistently and efficiently deliver premium quality products and services to the clients all across the globe.

As the company moves forward in FY21, it expects to continue registering consistent results and be associated with customers even more closely. The company intends to demonstrate that it can offer better service and increased value than rival companies. It highlighted that the efforts are already a success, evident through the strong preference for the brand's products and solutions. The products provide countless design possibilities for creating beautiful homes.

Also Read: Real Estate Price Uptick for a Third of Capital Cities in September

The company maintained that the guidance is based on current estimates and assumptions and is subject to uncertainties due to the COVID-19 pandemic and other factors 

Stock Information - On 16 October 2020, JHX stock traded at AUD 36.160. The company has a market capitalisation of AUD 16.52 billion.

 

There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!

 


Disclaimer
The website https://kalkinemedia.com/au is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The article has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) or engage in any investment activity under discussion. We are neither licensed nor qualified to provide investment advice through this platform. All pictures are copyright to their respective owner(s). Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.

 

   
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK