MENU

Why the James Hardie Industries plc share price is falling today

The James Hardie Industries plc (ASX: JHX) share price fell 4.5% today after the US homebuilder and building materials supplier revealed its financial results for the year ending March 31 2017.

Below is a summary of the results with comparisons to the prior corresponding year. All figures in U.S. dollars.

  • Net profit of $276.5 million, up 13%
  • Adjusted net profit of $248.6 million, up 2%
  • Net sales of $1,921 million, up 11%
  • A second half of FY 2017 dividend of 28 cents per security
  • Total full year dividends of 38 cents per security
  • Q4 FY 2017 net profit of $54.6 million, down 6%

This is another solid looking result from a business that is enjoying the tailwinds of resurgent U.S. housing markets, with some strong sales growth, not translating quite so well to the bottom line.

The group blamed the margin compression on higher manufacturing costs in the U.S. and increased investment in “marketing development programs”. It is these higher costs that are probably dragging the share price down this afternoon.

Outlook

The company stated that it expects “modest market growth” in U.S. housing markets to continue with the Australian and New Zealand businesses also expected to trend broadly in line with the average growth in housing construction markets.

James Hardie shares have nearly tripled in value over the past 5 years thanks to the housing boom in the U.S. and Australia, but it’s not the only one enjoying that tailwind. Others to consider with perhaps better long-term growth outlooks include DuluxGroup Limited (ASX: DLX) or Nick Scali Limited (ASX: NCK).

Another stock The Motley Fool knows with a BIG outlook is this Massive Dividend Stock to Buy Today (6.7% Current Gross Yield!)

FREE REPORT! Click here to discover the Motley Fool's #1 ASX dividend recommendation - currently paying a 6.7% gross yield!

Even better, this 'under the radar' consumer play is growing like gangbusters. Shares have rocketed 100% in the last 5 years, DOUBLING shareholders' investment. So what's not to like?

Simply click here to grab your free copy of this up-to-the-minute research report right now.

Motley Fool contributor Tom Richardson has no position in any stocks mentioned.

You can find Tom on Twitter @tommyr345

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.