James Hardie sees income plummet on weak demand

Global fibre cement maker James Hardie has seen net incomes drop 15% in the third quarter, blaming volatile North American conditions for the fall.

In its latest quarterly results, the company posted an adjusted net income of $US 156.3 million for the three months ended December 31, down from $US179.9 million the same time last year.

However, high net sales prices and improvements in its Asia Pacific markets – following the shut down of its Philippines operations – helped reduce the income reductions.

“this year is not over, and our business leaders remain focused on finishing strong to cement a strong foundation for the coming years,” James Hardie CEO Aaron Erter said.

“Our market demand expectations have not changed, but importantly, neither has our commitment to outperforming our end markets and managing the business.”

In North America, a combination of falling new home construction projects, down almost 1% from a year ago, due to underbuilding, with people staying in their homes longer due to higher interest rates.

New tariffs slated by the Trump Government are also expected to drive up costs of building materials and slowing the market.

James Hardie has seen its net sales from this market, historically its strongest, fall from $US727 million to $US 719.3 million year on year.

In Australia and New Zealand, volumes dropped by nearly a third, this was offset by higher average prices – up to 20%, as the group continued to search of ‘further efficiencies’ to support the division’s profitability. James Hardie also ceased manufacturing the Philippines, winding down commercial operations in the country.

The company has forecast its 2025 capital expenditures at the low end of its previous guidance, of between $US 420 million to $US 440 million.