Building products group James Hardie Industries SE (JHX.AU) on Friday lowered its outlook for full-year earnings after reporting a third-quarter net operating profit down 30% from a year before.

The largest maker of housing siding in the U.S. said activity in the U.S. housing market continues to track at historically low levels, and that while unemployment remains high and consumer confidence low, the company remains wary about predicting the timing of any recovery.

"As with previous periods, a combination of factors such as high levels of unemployment, low levels of consumer confidence, restricted access to credit and excess housing inventory continue to hinder growth in the residential housing construction market," which adds up to a weak and challenging market, Chief Executive Louis Gries said in a statement.

The company also said that recent interest rate increases in the Asia Pacific had an unfavorable effect on housing activity during the quarter, and this combined with the spate of natural disasters early this year in Australia means demand is expected to be softer and the outlook remains uncertain for the near term.

James Hardie reported a net loss, which includes all liabilities, of US$345.2 million in the first nine months, widening from US$82.6 million previously.

It also reported a third quarter net operating profit of US$21.0 million, down 30% from a year earlier. This took profit in the first nine months of the fiscal year to US$82.2 million, 25% down on the same period a year before.

The third-quarter result was built on a 4% on-year increase in net sales to US$272.6 million, while for the nine-month period sales rose 3% to US$878.6 million.

The Australian-listed company, which completed a domicile move to Ireland in June 2010 from the Netherlands, revised down its earnings guidance for the year ending March 31 to within a range of US$105 million to US$115 million, down from the lower end of a previous forecast range of US$110 million to US$125 million and from actual comparable earnings last fiscal year--excluding asbestos, regulatory expenses and tax adjustments--of US$133 million.

"Notwithstanding the ongoing difficult operating environment in the U.S., the company continues to perform well financially and our employees remain focused on driving our long-term strategies," Gries said in a statement.

-by Ray Brindal, Dow Jones Newswires; 612 62080902; ray.brindal@dowjones.com
James Hardie Industries (ASX:JHX)
Historical Stock Chart
From Nov 2024 to Dec 2024 Click Here for more James Hardie Industries Charts.
James Hardie Industries (ASX:JHX)
Historical Stock Chart
From Dec 2023 to Dec 2024 Click Here for more James Hardie Industries Charts.