• Second-quarter profit drops by 12%
• North American operations sees 5% drop in net sales

Nov 13 (Reuters) - Fibre cement maker James Hardie Industries (JHX.AX) , opens new tab on Wednesday raised the lower end of its fiscal year 2025 profit forecast, boosted by hopes of improved consumer sentiment and homeowner affordability, and approved a new share buyback plan of $300 million.

The company expects adjusted net income for fiscal 2025 to be at least $635 million, compared to its prior forecast range of $630 million to $700 million.

James Hardie, however, posted a 12% fall in second-quarter profit due to lower sales in its North American operations, the company's top profit generator.

The North American fibre cement division - which contributed over 70% in James Hardie's total sales for fiscal 2024 - brought in net sales of $695.8 million during the quarter, lower than the $734.4 million posted last year.

Uncertainty over mortgage rate direction, especially in North America, has discouraged home owners to shift houses or undertake repair and remodel activities, which has hurt the demand for the company's products.

The 5% drop in the net sales from the division was primarily due to market weakness, partially offset by a higher average net sales price from the company's January 2024 price increase.

The Dublin-based firm posted an adjusted net income of $157 million in the quarter ended September, compared with $178.9 million reported last year and a Visible Alpha consensus of $145.9 million.

James Hardie is expected to generate at least 2.95 billion standard feet from its North America volumes, compared to its prior estimated range of 2.95 to 3.15 billion standard feet.

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https://www.reuters.com/markets/commodities/fibre-cement-maker-james-hardies-q2-profit-falls-by-12-2024-11-12/