James Hardie Industries plc
) reported fourth-quarter 2013 adjusted earnings of 6.9 cents per
share, a decrease of 12.6% from the prior year quarter's earnings
of 7.9 cents per share. The results missed the Zacks Consensus
Estimate of 36 cents.
On a reported basis, earnings plunged 114% and recorded a loss of
15.8 cents per share in the fourth-quarter compared to a profit
of $1.098 per share. Earnings in the reported quarter include
asbestos, asset impairments, ASIC expenses, New Zealand product
liability expenses and tax adjustments.
On a reported basis, earnings for full-year 2013 were 10.3 cents
per share compared with $1.38 posted in 2012.
Revenues in the reported quarter increased 5.7% year over year to
$326.8 million. However, the results fell short of the Zacks
Consensus Estimate of $359 million. The growth was mainly driven
by an increase in sales volume in both the USA and Europe
segments and the Asia Pacific Fibre Cement segment.
Revenues for the full year increased 6.8% to roughly $1,321.3
million from $1,237.5 million in 2012. The results also missed
the Zacks Consensus Estimate of $1,354 million.
Cost of sales increased 5.3% to $225 million in the fourth
quarter from $213 million in the year-ago quarter. Gross profit
improved 6.5% year over year to $101.8 million. Consequently,
gross margin expanded 25 basis points (bps) to 31.1% in the
Selling, general and administrative expenses excluding New
Zealand product liability expenses went up 27% year over year to
$58 million. Adjusted operating loss was $69.5 million in the
fourth quarter compared with an operating profit of $480.7
million in the prior-year quarter.
Net operating cash flow decreased nearly four-fold year-over-year
to $109.3 million as of 31 Mar 2013.
For the year ended 31 Mar 2013, net capital expenditures
increased to $59.7 million, compared to $35.5 million in the
prior year. The increase in capital expenditures is driven by
investments made to fund facility upgrades and refurbishments of
idled equipment in anticipation of a continuing recovery in the
U.S. housing market.
James Hardie expects that improvement in the U.S. operating
environment reflects a sustainable recovery in housing market.
According to National Association of Home Builders (NAHB), growth
of the repair and remodel market will be slower than the new
housing market in the financial year 2014. In anticipation of the
ongoing recovery, the company is investing in capacity expansions
by re-commissioning idled facilities, as well as funding market
and organizational development.
The company anticipates that EBIT margin for the full year 2014
will increase as the growth in sales revenue exceeds spending on
organizational initiatives. These gains are expected to result in
an EBIT margin above 20% in the USA and Europe Fibre Cement
The operating environment in Australia is likely to remain
subdued and the company is not anticipating any substantial
increase in net sales. However, the strong upward trends in the
New Zealand construction market are expected to continue. The
Philippines operating environment is likely to remain robust and
the business is expected to contribute improved operating
earnings over the next twelve months.
Based in Dublin-Ireland, James Hardie manufactures fibre cement
products and systems for internal and external building
construction applications in the United States, Australia, New
Zealand and the Philippines. These products are used in a number
of markets, including new residential construction, manufactured
housing and repair and remodeling and a variety of commercial and
James Hardie currently retains a short-term Zacks Rank #2 (Buy).
) posted first-quarter 2013 adjusted earnings of 6 cents per
share compared with the prior-year loss of a penny per share. The
results were ahead of the Zacks Consensus Estimate of 3 cents.
Armstrong World Industries, Inc.
) reported first-quarter 2013 adjusted earnings of 22 cents per
share, declining 55% from the prior year quarter's earnings,
missing the Zacks Consensus Estimate of 39 cents.
) reported a loss from continuing operations of 14 cents per
share in second-quarter 2013 compared to the prior-year loss of
30 cents a share. The loss per share was wider than the Zacks
Consensus Estimate of a loss per share of 10 cents.
ARMSTRONG WORLD (AWI): Free Stock Analysis
HEADWATERS INC (HW): Free Stock Analysis
JAMES HARDI-ADR (JHX): Free Stock Analysis
PGT INC (PGTI): Free Stock Analysis Report
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