The James Hardie Industries plc (ASX: JHX) share price is sliding in early trade on Tuesday after the construction materials provider downgraded its 2023 forecast. At the time of writing, James Hardie is trading down 3.46% at $35.40.
What did the company report?
- Global net sales up 19% to US$1 billion for the quarter ending 30 June
- Adjusted net income up 15% to US$154.3 million for the quarter
- North America fibre cement net sales up 28% to hit US$740.1 million
- Global adjusted earnings before interest and tax up 15% to US$208.4 million
What else happened in FY22?
The big development for James Hardie in the past year is the departure of its chief executive Jack Truong in January.
He was sacked immediately after employees complained about his behaviour towards subordinates. The company revealed it "undertook extensive due diligence" including retaining external counsel and a third-party consultant.
However, the remedial measures apparently did not have the desired effect on Truong's behaviour.
"The board ultimately concluded that Truong's conduct, while not discriminatory, extensively and materially breached the James Hardie code of conduct," reported The Motley Fool at the time.
What did management say?
James Hardie interim chief Harold Wiens said "The James Hardie team has continued to deliver strong execution of our global strategy":
The global team's success in delivering high value products 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.
The revised outlook for financial year 2023 is the major concern in James Hardie's announcement on Tuesday.
The company previously forecast an adjusted net income range between US$740 million and US$820 million. That was downgraded to US$730 and US$780 million.
James Hardie chief financial officer Jason Miele gave the following reasons:
Our primary reasons for adjusting guidance downward are: continued inflationary pressures globally, our lowered expectations regarding Europe segment EBIT, the impact of a strengthening US dollar on the translation of our APAC and Europe earnings and housing market uncertainty.
James Hardie share price snapshot
The James Hardie share price hit an all-time peak late last year. However, this year so far it has lost 35.4%.
In early trade on Tuesday, James Hardie had plunged 3.6%.
The stock currently pays out a dividend yield of 2.64%.