The James Hardie Industries plc (ASX: JHX) share price is in positive territory on Monday morning. This comes after the company released its third-quarter results for FY22 before the market open.
The building products company's shares were 6.15% higher at $50.57 in early trading but have since retreated to $49.03, up 3% at the time of writing
Let's take a closer look to see how James Hardie performed for the three months ending 31 December 2021.
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Growth across key metrics
The James Hardie share price is moving forward following the company's robust results for the third quarter. Here are some of the key highlights:
- Global net sales of US$900 million, up 22% on the prior corresponding period (Q3 FY21 US$738.6 million)
- Adjusted earnings before interest and tax (EBIT) of US$204.1 million, up 22% (Q3 FY21 US$167.9 million)
- Adjusted net income of US$154.1 million, up 25% (Q3 FY21 US$123.3 million)
What happened in Q3 FY22 for James Hardie?
Investors are buying up the James Hardie share price as the company announced it continued to "deliver growth above market and strong returns".
James Hardie achieved double-digit growth across the value product mix in all three regions.
In today's report, the company advised that its North American Fiber Cement business partnered closely with customers to focus on creating demand by marketing directly to the homeowner. Also, the additional capacity provided by the company's on-time ramp up of its Prattville facility helped generate success. Net sales surged by 25%.
In the Europe Building Products segment, the team's execution on high value product mix strategy resulted in a strong price/mix. Although, momentum in margin expansion during the quarter was significantly impacted by hyperinflation on key energy prices. Net sales rose 14% driven by a lift in fibre cement and fibre gypsum net sales of 22% and 13%, respectively.
And lastly, the Asia Pacific Fiber Cement division experienced strong sales numbers through its high-value products strategy, up 20%.
What did management say?
James Hardie interim CEO Harold Wiens welcomed the result, saying:
I am pleased to report the James Hardie team has continued to execute well on our stated global strategy. This is reflected in strong price/mix growth in all three regions, including North America price/mix growth of +12%, Europe price/mix growth of +13% and Asia Pacific price/mix growth of +11%.
The team's success in delivering high value products, which underpins price/mix, is the result of (1) enabling our customers to make more money by selling more James Hardie products and, (2) marketing directly to the homeowners to create demand of our high value products through our customers.
What's the outlook for James Hardie for the remainder of FY22?
Looking ahead, James Hardie advised it has upgraded its FY22 guidance based on the robust performance across the regions.
As such, management lifted the FY22 adjusted net income guidance range to US$620 million and US$630 million. The previous guidance range stood from US$605 million and US$625 million.
Furthermore, management also announced a FY23 adjusted net income guidance range of US$740 million and US$820 million. However, this is based on the assumption there are no unforeseen impacts on the business from COVID-19.
James Hardie share price snapshot
The James Hardie share price has gained 28.71% over the past 12 months. However, year to date, the company shares have fallen 8.55%.
Based on today's price, James Hardie has a market capitalisation of around $21.52 billion.
