Displaying items by tag: fibre cement

Australia: James Hardie recorded net sales of US$2.10bn in the first nine months of its 2021 financial year, up by 9% year-on-year from US$1.93bn in the first nine months of its 2020 financial year. Adjusted earnings before interest and taxation rose by 25% to US$456m from US$366m. Sales and earnings increased in all three regions in which the company operates. In Australia and New Zealand, it reduced costs by consolidating fibre cement production at its two Australian plants.

Chief executive officer Jack Truong said, “I am pleased with these record results, underpinned by excellent execution of our business transformation that we began in 2019, combined with increasing demand for our premium-quality James Hardie brand products and solutions. The transformation we undertook to unlock capacity and increase efficiency in our global manufacturing network through lean initiatives and to better integrate our supply chain with our customers continues to deliver consistent market share gains and the ability to serve our customers seamlessly around the world. We are firmly on track with our investments in growth to broaden our portfolio with industry-leading innovations that enhance aesthetic value for homeowners. Our transformation initiatives will enable us to expand our market opportunity and allow us to continue to deliver strong performance.”

US: Mexico-based Elementia has appointed Tim Kuebler as the leader of Elementia USA. He was already the chief executive officer (CEO) of the company’s cement business in the US and the enlarged role includes responsibility for Allura, the group’s local fibre cement business. Kuebler became the CEO of Elementia’s US-based cement business, Giant Cement, in late 2017. Prior to this he spent most of his 35-year career working at first for Lehigh Cement and then Titan America in locations across the US.

Australia: James Hardie has revised its guidance for the quarter ending 30 June 2020, the fourth quarter of the Australian fiscal year 2020, following “improved housing market activity, particularly in North America.” Australian Associated Press – Financial News has reported that James Hardie has revised its North American fibre cement boards volumes growth estimate to 1% year-on-year from a 3% drop previously. It expects Australian volumes to remain constant year-on-year, as previously predicted, and European volumes in the quarter to fall by 13%, rather than by 16%.

Australia/New Zealand/US: Ireland-based James Hardie has announced the planned closure of three of its fibre cement board plants. The Cooroy, Queensland plant in Australia, Summerville, South Carolina plant in the US and Penrose, Auckland plant in New Zealand will close permanently in mid-2020, resulting in a total of 375 job cuts. The NZ Herald newspaper has reported that the decision to shut the plants came about due to the impacts of the coronavirus outbreak on the global economic situation. James Hardie will now supply the New Zealand market from its Carole Park, Queensland and Rosehill, New South Wales plants. James Hardie also closed its Siglingen, Baden-Württemberg plant in Germany on a temporary basis, ‘in order to better match supply and demand in the European market.’

James Hardie revised its 2020 profit forecast to US$355m, down by 4.1% from US$370m.

Nigeria: Chinese-owned FabCom has unveiled a new fibre cement board at a ceremony celebrating the fifth anniversary of its presence in Nigeria. The Sun has reported that the company will manufacture 5Mm²/yr at its fibre cement board plant in Ambuja, which will be operational before 1 January 2021. FabCom managing director Liuxing Wang praised the product’s environmental friendliness, noting its durability, sound insulation, fire and water resistance and multi-use workability. FabCom’s investments in Nigeria total US$190m and have created 200,000 jobs, the company says.

Australia: James Hardie has announced its financial results for the quarter ended 30 June 2017. The group’s adjusted net operating profit was US$61.7m, a decrease of 7% compared to the same period of 2016. Group adjusted earnings before interest and tax (EBIT) came to US$88.3m, a fall of 10% year-on-year, although net sales rose by 6% year-on-year to US$507.7m. James Hardie’s North American fibre cement segment saw its sales volume increase by 2% year-on-year, with nets sales up by 6% to US393.1m.

Group CEO Louis Gries said, "Our North America fibre cement segment results reflect top line growth of 6%, including volume growth below our market index. Additionally, manufacturing inefficiencies and production costs led to a decrease in EBIT margin of 5.2 percentage points compared to the prior corresponding period. Within our international fibre cement business, net sales increased 8% due to volume increases in our Asia Pacific market, and EBIT increased by 10%, driven by the strong performance of our Australian and New Zealand businesses."

US: US demand for fibre cement products is forecast to grow by 5.8%/yr until 2019 to 2.9Bnft², valued at US$2.2bn.

Accelerating construction expenditures, specifically in new housing, will spur demand. Siding is by far the largest application for fibre cement and demand will benefit from the popularity of fibre cement sidings in the south and west of the US, the regions that will experience the strongest growth in population and housing starts going forward. These and other trends are presented in 'Fiber Cement,' a new study from The Freedonia Group, a Cleveland-based industry market research firm.

The residential market accounts for the majority of fibre cement demand. According to Construction Group Leader Tom Bowne, while new housing demand for fibre cement products will rise at the fastest pace through 2019, residential improvement and repair will continue to account for a larger portion of residential demand. Sales of existing housing will generate demand for fibre cement products as homeowners look to increase the value of their properties before going to market.

Exterior fibre cement products have seen increasing use in the non-residential market in recent years, particularly in the form of fibre cement backer-board products. Fibre cement product demand in the non-residential market is forecast to grow by 5.4%/yr until 2019 to 670mft². Rebounding non-residential building construction demand will primarily drive gains. In addition, fibre cement siding and exterior trim will benefit from a design trend in commercial buildings that favours an exposed-wood appearance for exteriors. Fibre cement product manufacturers have responded to this demand by developing new wood-like products aimed at commercial buildings.

Siding accounts for over 70% of fibre cement product demand. Fibre cement manufacturers have found a great deal of success in this application, managing to penetrate a competitive market and becoming a major material option in siding over the course of a couple of decades. Backer-board is the second-largest application for fibre cement in the US and is expected to post above average growth in the forecast years.

UAE: Everest Industries of India is set to start production from its first overseas greenfield facility in the UAE in the first quarter of 2016, according to a company statement.

"The facility will be used to manufacture fibre cement boards and cater to our export markets in West Asia and Africa," said Manish Sanghi, Managing Director. Set up at an investment of US$150m, it will be able to produce up to 72,000t/yr of cement fibre boards.

Uzbekistan: The State Statistics Committee of the Republic of Uzbekistan said that in January – June 2015 the construction materials industry produced 2.11Mt of goods, 11.3% more than in the same period of 2014. The share of industry in total industrial production was 5.2%, according to UzReport. Compared with the first half of 2014, large enterprises in Uzbekistan have increased their production of Portland cement by 113%, gypsum by 108%, lime by 135%, non-refractory ceramic building bricks by 116% and fibre cement by 118%.

US/Australia: James Hardie chief executive Louis Gries said that the pace of the US housing recovery is underwhelming and remains below expectations as he reported an 11% rise in its third quarter 2015 adjusted profit to US$48.6m. Gries said that James Hardie has managed to increase prices on some product lines despite the slower-than-expected rebound in new home building in the world's biggest economy.

"We have higher volumes in all of our businesses and our average price is up in the US. The US housing market is still pretty flat for new construction. Housing starts are well below what you'd expect three to four years into a recovery," said Gries.
Despite on-going muted building in the US, where James Hardie derives about 80% per cent of its revenue, the company is going ahead with big capacity expansions at its Plant City, Florida, plant and at plants in Cleburne, Texas and Carole Park in Queensland, Australia. In the first nine months of its 2015 financial year, which ended on 31 December 2014, James Hardie spent US$154.3m on capacity expansions and new land acquisitions in New South Wales, Australia and Tacoma, Washington, USA. Some capacity expansions have been delayed pending a pick up in conditions.

James Hardie's net operating profit in the quarter that ended on 31 December 2014 rose by 17% year-on-year to US$108m. Revenue rose by 10% to US$388m. James Hardie expects full-year adjusted net operating profit to be between US$210 - 222m. In its Asia Pacific business, James Hardie expects strong growth in the Philippines due to momentum in high rise developments and a push into the commercial building market. The Australian and New Zealand businesses are both expected to improve on the back of strong new home building and a rebound in repairs and remodelling in Australia.

James Hardie has a legacy asbestos liability to compensate victims suffering asebestos-related diseases from use of the company's former products. It pays 35% of its operating cash flow into the independently-run Asbestos Injuries Compensation Fund (AICF). In the first nine months of its financial year, asbestos claims were 11% higher than actuarial expectations. On 1 July 2014, James Hardie paid US$113m to the AICF.