James Hardie (ASX:JHX) remains cautious on the possibility of a recovery in building starts as the US housing market struggles to improve and that's where the bulk of the company's revenue comes from.
In the company's first quarterly profit result since moving headquarters to Dublin, chief executive Louis Gries said that sales volumes - and profit - were almost certainly going to be lower than last financial year because the recovery in the US was ''disappointing and fragile''.
US housing starts for the June quarter were around 18,000 units higher than last year but still 74 per cent lower than their 2005 peak.
James Hardie reported a full-year net operating profit, (excluding asbestos liabilities) of $US40.5 million for the June quarter, which is down 3 per cent on last year.
The company has provided full-year net operating profit guidance of between $122 million to around $140 million for the year ending March 31, which is lower than last year's result and below analysts forecasts.
James Hardie reported a $92 million loss for the 12 months to March 30, 2010.
JHX Price at posting:
$5.58 Sentiment: None Disclosure: Held
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