good short

Sydney - Monday - November 22: (RWE Australian Business News) -
James Hardie Industries NV net profit fell 9 per cent to $US61.1 million
in the six months to September 30 from $US67.5 million for the first
half of last year.
Net profit from continuing operations fell 6 per cent to $61.8
million from $65.7 million.
Net sales rose 23 per cent to $607 million from $493.1 million.
For the second quarter, net profit fell 24 per cent to $24.8
million from $32.8 million on net sales up 20 per cent to $300.9 million
from $251.6 million.
The company has also downgraded its forecast for the full year.
Net tangible assets per share increased 9 per cent to $US1.20
from $US1.10.
The board says it has decided to defer consideration of an
interim dividend until it is in a position to better assess the
financial impact of the likely outcome of negotiations with the ACTU,
Labor Council and representatives of asbestos diseases groups in
relation to the future funding of legitimate asbestos diseases claims
against former subsidiary companies.

*****

Earnings were lower due to costs associated with the NSW
Government Special Commission of Inquiry into the Medical Research and
Compensation Foundation (SCI) and other associated developments, and
increased costs in the US Fibre Cement business.
The US Fibre Cement business continued to grow strongly,
delivering a 21 per cent rise in net sales for the quarter, but EBIT
fell 9 per cent due to higher spending on ramping up growth initiatives
and higher manufacturing costs, including increased costs caused by
efficiency problems at a number of the company's US plants.
"The efficiency issues have been addressed and are now largely
behind us and prices of our most cost-significant raw material are
declining," directors said.
In Asia-Pacific Fibre Cement, net sales increased 14 per cent
and EBIT 31 per cent.
Interim CEO Mr Louis Gries said: "Despite continued strong
top-line growth in the second quarter, the bottom line was affected by a
number of non-recurring items and a dip in the operating performance of
some of our US plants.
"However, the company's cash generation continued to be very
strong and was up a significant 50 per cent for the half-year.
"The outlook for housing construction in North America remains
positive for the remainder of the year despite the prospect of modest
interest rate increases.
"Further strong sales growth is expected as we continue to take
market share in our emerging and established markets and in our exterior
and interior product categories in North America.
"Many of the internal and external factors that adversely
impacted financial performance in our North America businesses have
already been overcome and further improvement is expected.
"Given the external pressures on our Australia and New Zealand
business during the quarter, its overall performance was particularly
pleasing."

*****

The current range of analyst estimates for profit from
continuing operations for the full year ending March 31 2005 is $151
million to $160 million, excluding costs for the SCI and other
associated developments.
Due to higher spending in the North America business on
ramping-up growth initiatives, increased manufacturing and other costs
incurred in the second quarter, plant start-up expenses in the second
half, and the potential impact of negative customer sentiment and
product boycotts on the profitability of its ANZ business in the second
half, James Hardie now expects profit from continuing operations
(excluding costs for the SCI and other associated developments) to fall
within the range of $135 to $145 million for the year.
James Hardie CHESS Depositary Interests rose 8c to $6.75 on
Friday.