James Hardie doubles profit
Building products maker James Hardie has more than doubled its half year profit thanks to stronger sales from its European and US businesses.
James Hardie made a net profit of $US194 million ($A208.52 million) in the six months to September 30, up from $US84 million in the same period in 2012.
Chief executive Louis Gries said the Dublin based company was benefiting from improved sales to Europe and the US.
“The second quarter results for our US and European business reflect increased volumes and a 25 per cent increase in net sales revenue, capitalising on the continued improvement in US housing market conditions relative to last year,” he said.
James Hardie’s Asia Pacific business also increased sales, but the stronger US dollar hampered earnings growth.
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Its shares soared in early trade, adding $1.49, or 14 per cent, to $11.91 by 1015 AEDT.
The company’s net operating profit in the six months to September, which excludes items such as asbestos and legal liabilities, was $US108 million ($A116.09 million), up from $US83 million in the previous corresponding period.
James Hardie expects to make a full year operating profit, excluding asbestos liabilities, legal costs and tax adjustments, of between $US180 and $US195 million, up from $US141 million in the previous year.
James Hardie will pay an interim dividend of eight cents per share, up from five cents per share 12 months ago.
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In other profit results, Optus has lifted its second quarter profit by 33 per cent after cost cutting measures offset falling revenue.
The Singapore Telecommunications-owned telco made a profit of $218 million for the three months to September 30, up from $164 million for the same period last year.
Optus said operating expenses were down $202 million due to cost saving initiatives, which offset a five per cent fall in revenue to $2.12 billion during the quarter.
The company said it was working to reshape its business and grow its profitability by doing more to attract and keep customers.
It said it had experienced a 36 per cent decline in complaints in the past 12 months, thanks in part to the launch of plans which remove breakage and credit card fees and reduce international roaming charges.
Optus boss Kevin Russell also said the company was working to expand its 4G network to cover 70 per cent of Australia’s metro population by April 2014.
“Optus is positioning itself to meet customers needs for additional capacity and faster network speeds,” Mr Russell said.
