James Hardie Industries shares have surged by double digits after the building products supplier announced what management is describing as its best-ever first-quarter results by some metrics.
The world's biggest manufacturer of fibre cement building tiles and siding said its adjusted net income for the June quarter was up 13 per cent to a record $US174.5 million, while its operating cash flow was up 64 per cent to a record $US252.3 million.
Sales were down five per cent to $US954.3 million, but James Hardie was able to hike prices, with its earnings margin rising 370 basis points to 24.5 per cent.
"We have a superior value proposition with the right products and solutions that our customers are seeking, which allows us to continue to deliver differentiated results," the Dublin-headquartered company said.
"We are homeowner-focused, customer- and contractor-driven, providing the entire value chain with world-class products and services."
James Hardie said the outlook for the housing market was uncertain, with its data providers forecasting that building activity in North America would be down five to 18 per cent in 2023, compared with last year.
During the year James Hardie cancelled plans to build a new $400 million manufacturing facility in Truganina, Melbourne, after breaking ground on it last year.
The company said it was trying to make better use of capital, and its expansion in the Asia-Pacific could be executed over a longer timeframe.
At 1.42pm AEST, James Hardie shares were up 14.1 per cent to an 18-month high of $46.51.
