Adjusted NOPAT guidance range increased to between US$380 million and US$420 million for full-year Fiscal Year 2021.
Second Quarter Fiscal Year 2021 Guidance:
LEAN manufacturing transformation and Zero Harm-focus have enabled the company to meet growing demand for its fiber cement and fiber gypsum building materials.
Continued focus on fortifying stronger customer partnership and connecting market demand to manufacturing have enabled the company to service customers at higher levels than ever before.
- Group Net Sales of between US$735 million and US$740 million, ~+12% growth versus prior corresponding period (“pcp”)
- Group Adjusted EBIT of between US$160 million and US$165 million, ~+22% growth versus pcp
- Group Adjusted EBIT margin of approximately 22%, an improvement of ~200 bps versus pcp
- North America Fiber Cement Segment exteriors volume growth of ~+11% versus pcp;
- North America Fiber Cement Segment Adjusted EBIT margin of between 28% and 29%
- Europe Building Products Segment Adjusted EBIT margin of between 10% and 11%
- Asia Pacific Fiber Cement Segment Adjusted EBIT margin of between 31% and 32%
James Hardie Industries plc (ASX: JHX; NYSE: JHX), the world’s #1 producer and marketer of high-performance fiber cement and fiber gypsum building solutions raised FY2021 guidance, as the company continues to deliver growth above market and strong returns as it remains steadfast in its journey toward its global transformation.
“We began our transformation over 18 months ago. Delivering these consistent results is a testament to the foundational strength we are building within our company. Our business, like our products, is built to last. Our commitment to Zero Harm and our focus on global manufacturing efficiency has allowed us to consistently provide a high level of service to our customers and deliver quality products to the markets in which we operate around the world. This transformation, which is driven by a continuous improvement mindset, has enabled our ability to deliver consistently improving financial results,” said James Hardie Industries Chief Executive Officer Dr. Jack Truong.
Full-Year FY2021 and Second Quarter FY2021 Guidance
James Hardie raised the full-year FY2021 adjusted NOPAT guidance range to between US$380 million and US$420 million, from between US$330 million and US$390 million.
For the second quarter FY2021, the company expects Group Adjusted EBIT and Group Adjusted NOPAT to both increase by approximately 22% compared to the prior corresponding period. The company also expects second quarter Group Net Sales, Group Adjusted EBIT and Group Adjusted NOPAT to be all-time quarterly highs.
Delivering record Group Net Sales, Group Adjusted EBIT and Group Adjusted NOPAT was made possible by having all three operating regions deliver growth above market with strong returns in the second quarter of FY2021. This marks the first time that all three operating regions (North America, Asia Pacific, and Europe) delivered strong financial results concurrently.
“This is the sixth consecutive quarter that we have delivered growth above market with strong returns. We continue to achieve these results by executing better every day against our strategic imperatives and seamlessly serving our customers, while improving working capital for our customers and for the company,” Dr. Truong said.
Additional Second Quarter FY2021 Guidance:
The Company’s Continued Transformation
- Asia Pacific Fiber Cement Segment Net Sales growth of ~+4% in local currency, versus pcp.
- Europe Building Products Segment Net Sales growth of ~+8% in local currency, versus pcp.
- Liquidity of ~US$890 million at 30 September 2020, an increase of ~US$190 million from 30 June 2020.
“We expect to continue to deliver consistent results as our company evolves,” Dr. Truong said. “We’ve made significant progress on our LEAN manufacturing transformation, which allows us to consistently and efficiently deliver premium-quality products and service to our customers around the world where we operate. As we move forward, we will partner even more closely with our customers. We will continue to demonstrate that James Hardie can provide better service and increased value than any other building materials company. These efforts are underpinned by the homeowners’ strong preference for James Hardie brand products and solutions, which provide endless design possibilities that create beautiful homes that last.”
Dr. Truong concluded, "I would like to extend my gratitude and thanks to all James Hardie colleagues around the world. These results would not have been possible without their extraordinary efforts. I would like to specifically recognize our team members in our manufacturing facilities around the world. They were the engine driving our success by reliably and safely performing their responsibilities and empowering us to consistently supply our customers at the highest level during the highly volatile market environment these past six months."
James Hardie’s guidance is based on current estimates and assumptions and is subject to several known and unknown uncertainties and risks, including those related to the COVID-19 pandemic and set forth below in “Forward-Looking Statements.”
Management will conduct a brief conference call on Wednesday 14 October 2020, 12:00 pm Sydney, Australia time (Tuesday 13 October 2020, 9:00 pm New York City, USA time) to answer questions specific to this announcement. A teleconference will be available for analysts, investors and media.
Management will conduct its Q2 FY21 results briefing on Tuesday 10 November 2020, 09:00 am Sydney, Australia time (Tuesday 09 November 2020, 5:00 pm New York City, USA time). A teleconference will be available for analysts, investors and media.
This media release has been authorized by the James Hardie Board of Directors.
Investor, Analyst and Media Enquiries: Anna Collins
Telephone: +61 2 8845 3356
James Hardie Industries plc is a limited liability company incorporated in Ireland with its registered office at Europa House, 2nd Floor, Harcourt Centre, Harcourt Street, Dublin 2, D02 WR20, Ireland