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1 st quarter net operating profit US$40.5m
(excluding asbestos, ASIC expenses and tax adjustments)
James Hardie today announced a US$40.5 million net operating profit, excluding asbestos, ASIC
expenses and tax adjustments, for the quarter ended 30 June 2010. This represents a decrease of
3% compared to the prior corresponding quarter.
The net operating result for the first quarter including asbestos, ASIC expenses and tax
adjustments was a profit of US$104.9 million, compared to a loss of US$77.9 million for the
corresponding quarter of the prior year. The current quarter’s result includes a favourable asbestos
adjustment of US$63.1 million, which is attributable to the depreciation of the Australian dollar
against the US dollar. For the quarter from 31 March 2010 to 30 June 2010, the Australian dollar
depreciated against the US dollar by 7% to US$0.8522, compared to an 18% appreciation from
31 March 2009 to 30 June 2009.
“The recovery in the US residential housing market remains disappointing and fragile,” said James
Hardie CEO, Louis Gries. “Following the expiry of the US government tax credit incentives at the
end of April 2010, the gradual recovery of US residential construction, which had been apparent in
the first four months of calendar 2010, stalled. At 549,000 units, annualised sales of new homes in
June 2010 fell to their lowest level since April 2009, and were the second lowest since 1963.
“Factors such as lower mortgage application rates and construction volume and weak builder
sentiment, reinforce the continuing weakness in the US housing market.
“Improved results from our Asia Pacific business have again contributed strongly this quarter.
Corporate costs have also been reduced as the number of unresolved legacy issues diminish.
These factors offset a downturn in US results in the quarter,” said Mr Gries.
In this Media Release, James Hardie may present fi