James Hardie forecasts higher first-quarter profit, shares jump

(Reuters) -James Hardie Industries on Tuesday forecast a higher profit for the first quarter of fiscal 2024, sending its shares nearly 9% higher, although the company flagged uncertainties in global housing markets.

The Dublin-based firm expects an adjusted net income in the range of $145 million to $165 million for the first quarter, compared with a profit $154.3 million in the year-earlier period and a consensus estimate of $137 million, according to Citi.

Shares of the buildings materials firm rose as much as 8.9% to A$37.02 by 0054 GMT, making it the top gainer on benchmark index.

"Largely, as it appears, the last downgrade might be in, and despite the limited look forward, the 1Q outlook looks marginally stronger than estimates...," Citi analysts said in a note.

James Hardie also reported a 2% fall in reported adjusted net income to $605.5 million for financial year 2023. For the fourth quarter, the company's adjusted net income slid 18%.

The company, however, flagged that it sees demand for new homes in the United States — which accounts for James Hardie's majority of revenue — to decrease between 14% and 19% in fiscal 2024 over uncertainty in housing markets.

"Despite the changing market conditions, we remain committed to investing in capacity expansion," said Chief Financial Officer Jason Miele.

For fiscal year 2024, it expects to spend a total of about $550 million in capital expenditure.

(Reporting by Echha Jain in Bengaluru; Editing by Subhranshu Sahu and Uttaresh Venkateshwaran)