The James Hardie Industries plc (ASX: JHX) share price is diving after the company released its Q3 FY23 results this morning.
The James Hardie share price opened at $29.49 and fell quickly to a low of $28.975, down 8.7% on yesterday's close.
Let's see what the global building materials giant reported.
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James Hardie share price tanks on falling sales
Here are key points for the three-month period ending 31 December 2022:
- Net sales down 4% to US$860.8 million on the prior corresponding period (pcp) of Q3 FY22
- Adjusted earnings before interest and taxes (EBIT) down 19% to US$165.4 million pcp
- Adjusted EBIT margin of 19.2%, down from 22.7% pcp
- Adjusted net income down 16% pcp to US$129.2 million
Given the housing downturns in the US and Asia-Pacific, it was a tough quarter for the company. The James Hardie share price fell by 14.4% over the three months to 31 December 2022.
However, if we look at the full fiscal year 2023, taking in the nine months to 31 December, net sales from ordinary activities are up 8% and the profit after tax attributable to shareholders is up 6%.
Additionally, the net tangible assets per share are up 35% to US$2.76.
What did management say?
James Hardie CEO Aaron Erter commented on the full fiscal year results:
Our team executed in the face of significant challenges to deliver strong financial results in fiscal year 2023.
The team's performance is reflected in strong Price/Mix growth in all three regions, including North America Price/Mix growth of +10%, Asia Pacific Price/Mix growth of +6% and Europe Price/Mix growth of +14%.
We are managing quickly and decisively to accelerate our competitive advantages through this market downturn and we view this time as an opportunity.
What's next?
Erter said the company had lowered costs by reducing staff and spending while continuing to "significantly invest in strategic growth initiatives".
He said:
Most importantly we remain aggressive, and we are laser focused on driving profitable volume share gain in every region and segment we do business in.
We are being agile and adaptive in responding to significant changes in market conditions, but we are also being thoughtful and focused on where we can accelerate our competitive advantages
FY23 guidance lowered
James Hardie has lowered its adjusted net income guidance for the full-year 2023 to a range of US$600 million to US$620 million. This is down from the previous guidance of US$650 million to US$710 million.
For comparison, the company reported an adjusted net income of US$620.7 million in FY22.
The FY23 guidance was lowered due to "lower than expected second half volume results in both North America and APAC and restructuring charges incurred in the second half", according to the company's statement.
James Hardie share price snapshot
On 29 December, the James Hardie share price hit a new 52-week low of $25.84. It has since rebounded by 12%. The S&P/ASX 200 Index (ASX: XJO) is up 7.6% in the year to date.
