Displaying items by tag: fibre cement
James Hardie presents results for second quarter of 2017
08 August 2017Australia: 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 demand for fibre cement products set to grow
17 December 2015US: 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.
Everest fibre cement board plant to open in 2016
29 September 2015UAE: 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%.
James Hardie profit jumps despite soft US housing recovery
20 February 2015US/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.
James Hardie’s second quarter profit jumps by 66%
20 November 2014Australia: Fibre cement producer James Hardie has posted a sharp increase in its operating profit for the second quarter of its 2015 financial year, despite a slower-than-expected recovery in the US housing sector.
James Hardie, which generates 66% of its revenue in Europe and the US, had warned of short-term US uncertainty with the recent 'flattening in housing activity,' but has forecast a moderate improvement for the year ending in March 2015. Its Australian, New Zealand and Philippines businesses are also expected to improve.
"Management cautions that, although US housing activity has been improving for some time, market conditions remain somewhat uncertain and some input costs remain volatile," said James Hardie.
The company reported a net operating profit of US$127m for the quarter that ended 30 September 2014, up from US$51.9m in the same period of 2013. Chief executive Louis Gries said that the 66% jump reflected increased volumes and higher average net sales prices across its US, European and Asian fibre cement businesses, which drove net sales up by 12% for both the quarter and the half-year. "The recovery of the US housing market remains below our expectations at the beginning of the year," said Gries.
For the 2015 financial year, James Hardie expects US$205 – 235m of net operating profit, excluding asbestos compensation costs. In the 2014 financial year, the company reported US$197m of net operating profit.
Everest Industries plans new fibre cement plant in UAE
20 October 2014UAE: Everest Industries, a leading Indian manufacturer of building solution products, plans to set up a fibre cement board plant in the UAE as part of its global expansion strategy. The new plant, which will produce about 72,000t/yr of fibre cement, will be set up through a wholly-owned subsidiary company of Everest Industries in Mauritius. Everest Industries has already won approval from its board of directors for the new UAE venture.
James Hardie’s first quarter 2015 net profit fell by 80%
15 August 2014Australia: James Hardie Industries, an Australian fibre cement producer, has posted an 80% fall in its net profit to US$28.9m during the first quarter of its 2015 fiscal year, which ended on 30 June 2014. During the same period of its 2014 fiscal year, net profit was US$142m.
The company revised down its full year earnings expectations due to an uncertain US economic recovery. James Hardie generates 66% of its revenue in Europe and the USA. James Hardie's CEO, Louis Gries, said that the US market 'is recovering more modestly than we assumed at the start of the year.'
Vietnam: The Vietnamese Ministry of Health has proposed that the government should add asbestos, which is widely used to produce roofing sheets in Vietnam, to the list of toxic chemicals subject to a full ban. There are 36 producers of asbestos cement (AC) roofing sheets in Vietnam, with an annual production capacity of 100Mm2 of roofing sheets.
Vietnam has used asbestos since the 1960s and the country is among the world's 10 largest users of asbestos, consuming and importing some 60,000t/yr. More than 90% is used to manufacture AC roofing sheets, while the rest is for the production of car brakes and thermal insulation.
Deputy health minister Nguyen Thanh Long has said that the World Health Organisation (WHO) and international cancer research agencies have warned that all types of asbestos can cause lung, larynx and ovarian cancer, as well as mesothelioma and asbestosis. Asbestosis, a disease of the lungs caused by inhaling asbestos fibres, has been recognised in Vietnam as an occupational disease eligible for compensation since 1976. Ministry research has shown that people living near an area where asbestos is used, or those living under a roof made from asbestos, can also be affected.
The Research Institute of Technology for Machinery under the Ministry of Industry and Trade have developed a non-asbestos roofing sheet production line. Polyvinyl alcohol synthetic fibre (PVA) is used to replace the asbestos, while pulp additives increase stickiness. Prices of non-asbestos roofing sheets are 10 - 15% higher than those made from asbestos.
India: CK Birla group's subsidiary, HIL Limited, has announced that it has sold 100,000t of Charminar brand fibre cement roofing sheets in May 2014.
"This is the highest ever achieved by any brand globally," said HIL's managing director, Abhaya Shankar. He added that Charminar has been a household name, synonymous with asbestos roofing solutions across India, for nearly six decades. HIL has eight manufacturing plants, an installed capacity of 1Mt/yr and a 20% share in the US$669m market of asbestos roofing products in India.
Formerly known as Hyderabad Industries Limited, HIL launched Charminar asbestos roofing products 66 years ago. Shankar said the brand had attained market leadership some time in the late 1950s and retained that position thereafter. As a part of brand-building efforts, HIL has deployed campaign vans, relied on wall paintings and actively participated in village marts and other such events in rural areas. According to Shankar, the brand building involved three aspects: a strong relationship with distributors, a pan-Indian presence and consistent policies in respect of trade. HIL has also made use of a good supply chain and a robust system to get customer feedback. HIL spends about 2.5-3% of its revenues on brand building.