James Hardie raises profit guidance on the back of strong price/mix growth

James Hardie (ASX: JHX) jumped 3.59% in early trading today following revelations that the building materials group had raised full-year profit guidance by 7% on the back of the pandemic-fuelled construction boom.

Within today’s third quarter FY22 announcement, management guided to full-year net income of between $US620m and $US630m, compared with previous guidance of $US580m to US$600m.

Revenue jumped 22% to $US900m in the three months ending December 31. Meanwhile, net income leapt 25% to $US154.1m.

Commenting on the result, James Hardie Interim CEO, Harold Wiens noted that the company had recorded “strong growth” across North America, Europe and Asia Pacific.

Wiens believes the company’s success in delivering high value products, which underpins price/mix, is the by-product of enabling customers to make more money by selling more James Hardie products and, marketing directly to the homeowners to create demand of high value products through customers.

“I am pleased to report the James Hardie team has continued to execute well on our stated global strategy,” Wiens said.

"This is reflected in strong price/mix growth in all three regions, including North America price/mix growth of 12 per cent, Europe price/mix growth of 13 per cent and Asia Pacific price/mix growth of 11 per cent.

Going into lunch the share price had given up some of the early gains, up 1.45%.