Housing rebound lifts James Hardie

BUILDING materials supplier James Hardie has posted a 13 per cent rise in full-year profit largely due to strong housing construction in its core market, the US.

The company also benefited from a decrease in asbestos claims in 2016-17. James Hardie made a net profit of $US276.5 million ($A371.8 million) in the year to March 31, as sales rose 11 per cent to $US1.92 billion.

Sales of fibre cement – the group’s flagship product that is used in walls, ceilings, floors and fences – were up 12 per cent in the US.

Housing market activity in Australia and New Zealand underpinned a 22 per cent rise in earnings from its fibre cement business outside of the US, including Asia and the Middle East.

“Asia Pacific had a good year – the only bump in the road was the Philippines,” chief executive Louis Gries said, in reference a drop in sales in the Philippines due to imports from competitors.

Its Australian operations were strong, with improvements in volume, price, costs and the efficiency of its new cement plant in Queensland, he said. The performance of the Australian business is expected to be steady in the 2017-18 year, Mr Gries said.