James Hardie Industries Announces Record Fourth Quarter And Fiscal Year 2021 Results
James Hardie Industries (ASX: JHX; NYSE: JHX) reported record financial results for Q4 and FY21, achieving a global net sales increase of 20% to US$807 million compared to FY20. Adjusted EBIT rose 43% to US$173.1 million, with a margin expansion of 340 basis points to 21.4%. In North America, net sales grew 17% to US$555.3 million and Adjusted EBIT increased 27%. The company generated record operating cash flow of US$786.9 million, up 74%. Future guidance for FY22 expects Adjusted Net Income between US$520 million and US$570 million, reflecting continued growth momentum.
- Q4 FY21 global net sales increased 20% to US$807 million.
- Adjusted EBIT rose 43% to US$173.1 million, with margin expansion of 340 bps to 21.4%.
- North America segment net sales increased 17%, generating 27% Adjusted EBIT growth.
- Record operating cash flow of US$786.9 million, up 74% from FY20.
- Guidance for FY22 Adjusted Net Income between US$520 million and US$570 million.
- Ongoing risks and uncertainties related to the COVID-19 pandemic could impact future performance.
James Hardie Industries plc (ASX: JHX; NYSE: JHX), the world’s #1 producer and marketer of high-performance fiber cement and fiber gypsum building solutions, announced record results for its fourth quarter and fiscal year ending 31 March 2021.
Fourth Quarter Fiscal Year 2021 Highlights, Compared to Fourth Quarter Fiscal Year 2020, as Applicable:
-
North America Fiber Cement Segment Net Sales increased +
17% to US$555.3 Million and Adjusted EBIT increased +27% to US$152.9 Million in US Dollars, with Adjusted EBIT margin expansion of 220 basis points to27.5% -
Europe Building Products Segment Net Sales increased +
12% to€104.6 Million and EBIT increased to€15.7 Million in Euros, with record EBIT margin of15.0% -
Asia Pacific Fiber Cement Segment Net Sales increased +
11% to A$162.6 Million and Adjusted EBIT increased +46% to A$43.7 Million in Australian Dollars, with EBIT margin expansion of 630 basis points to26.8% -
Group Adjusted EBIT margin of
21.4% , an expansion of 340 bps
James Hardie CEO, Dr. Jack Truong, said, “I am proud of our globally integrated team’s ability to close out the fiscal year with a fourth quarter of exceptionally strong results. We have now delivered eight consecutive quarters of consistent profitable growth, including record financial results each of the past three quarters. Our performance in fiscal year 2021 marked a significant step change across multiple facets of our Global Company that allowed us to deliver this consistent profitable growth on an expanding global scale. Over the past twelve months, we were able to accelerate our strategy: (i) to unlock capacity and increase efficiency in our global manufacturing network through LEAN initiatives, and (ii) to better integrate our supply chain with our customers, which collectively drove consistent market share gains in all three regions.”
“Partnering more closely with our customers has resulted in eight straight quarters of above market growth with strong returns. LEAN initiatives are improving the quality and efficiency of our world-class manufacturing capabilities, which contributed a meaningful portion of the 340 basis point Adjusted EBIT margin expansion in fiscal year 2021. Our integrated approach connecting our supply chain with market demand through our customers and to our LEAN network of plants led to increased sales with more efficient working capital which resulted in a
Dr. Truong continued, “Our expanded focus for fiscal year 2022 and beyond is to execute on the three strategic initiatives that we introduced in February 2021. This includes commercializing global product innovation, further penetrating into existing and new market opportunities, and extending the James Hardie brand from a premium professional brand into a market-leading consumer brand. We are on or ahead of plan for each of these initiatives. This month, we are launching our first phase of innovation. This market-driven innovation represents a cornerstone of our organic growth potential in the coming years. In April, we began to roll out a global marketing campaign to create demand directly with homeowners to position James Hardie as the trusted brand of premium quality products that provide endless design possibilities. We continue to execute LEAN through our growing, global network of plants to continue to reduce variation, increase efficiency and improve quality to serve our customers better every day. We could not be more excited for our future and the opportunity to further convert our strategic vision into tangible benefits for homeowners, our customers, our employees, and shareholders.”
Fourth Quarter Fiscal Year 2021 Results Compared to Fourth Quarter Fiscal Year 2020 Results
Global Net Sales of US
North America Fiber Cement Segment: Net sales increased
Europe Building Products Segment: Adjusted EBIT increased to
Asia Pacific Fiber Cement Segment: Adjusted EBIT grew
Capital Resources
We generated record operating cash flow of US
In January 2021, we used our strong cash position to voluntarily redeem our
Capital Management
In April 2021, we paid a special dividend of US
James Hardie CFO, Jason Miele, stated, “The fiscal year 2021 step-change in cash flow generation was an impressive testament to our ongoing efforts to transform James Hardie into a high-performing, world-class organization. Our ability to resume issuance of dividends earlier than expected, and our recent pay down of debt, affirm our confidence in continued strong cash generation moving forward. We believe our ability to drive profitable growth will expand as we commercialize global innovations into new markets and further penetrate the repair and remodel market. Our strong balance sheet and cash flows put us in an advantageous position to internally fund investments that extend our brand with consumers, expand our global capacity, and commercialize market-driven product innovations. We look forward to executing on all our capital allocation objectives to fuel the next chapter of our organic growth strategy in fiscal year 2022 and beyond.”
Outlook and Earnings Guidance
The Company is experiencing strong growth momentum in its businesses across all three regions. Residential and market growth in the USA is expected to continue. The Company is introducing its outlook for fiscal year 2022, ending 31 March 2022. Management expects fiscal year 2022 Adjusted Net Income to be between US
In addition to fiscal year 2022 Adjusted Net Income guidance, management has provided long-term targets (FY2022-FY2024) for annual Adjusted EBIT margin in each operating segment as follows:
-
North America
25% -30% -
Asia Pacific
25% -30% -
Europe
11% -16%
James Hardie’s guidance is based on current estimates and assumptions and is subject to several known and unknown uncertainties and risks, including those related to the COVID-19 pandemic. James Hardie continues to assess the impacts and the uncertainties of the COVID-19 pandemic on the geographic locations in which it operates, and the continuing impact of the pandemic on the Company’s business and future financial performance remains uncertain.
Key Financial Information |
||||||||||||||||||||
Q4 FY21 |
|
Q4 FY20 |
|
Change |
|
Full Year FY21 |
|
Full Year FY20 |
|
Change |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Group (US$ millions) |
||||||||||||||||||||
Net Sales |
$ |
807.0 |
|
|
$ |
673.2 |
|
|
|
|
$ |
2,908.7 |
|
|
$ |
2,606.8 |
|
|
|
|
Adjusted EBIT |
173.1 |
|
|
121.0 |
|
|
|
|
629.0 |
|
|
486.8 |
|
|
|
|||||
Adjusted EBIT Margin |
|
|
|
|
3.4 pts |
|
|
|
|
|
2.9 pts |
|||||||||
Adjusted Net Income |
124.9 |
|
|
86.6 |
|
|
|
|
458.0 |
|
|
352.8 |
|
|
|
|||||
Operating Cash Flow |
|
|
|
|
|
|
786.9 |
|
|
451.2 |
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
North America Fiber Cement (US$ millions) |
||||||||||||||||||||
Net Sales |
$ |
555.3 |
|
|
$ |
474.5 |
|
|
|
|
$ |
2,040.2 |
|
|
$ |
1,816.4 |
|
|
|
|
Adjusted EBIT |
152.9 |
|
|
120.0 |
|
|
|
|
588.0 |
|
|
470.5 |
|
|
|
|||||
Adjusted EBIT Margin |
|
|
|
|
2.2 pts |
|
|
|
|
|
2.9 pts |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Asia Pacific Fiber Cement (A$ millions) |
||||||||||||||||||||
Net Sales |
A$ |
162.6 |
|
|
A$ |
146.1 |
|
|
|
|
A$ |
635.2 |
|
|
A$ |
614.1 |
|
|
|
|
Adjusted EBIT |
43.7 |
|
|
29.9 |
|
|
|
|
177.3 |
|
|
139.1 |
|
|
|
|||||
Adjusted EBIT Margin |
|
|
|
|
6.4 pts |
|
|
|
|
|
5.3 pts |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
{
"@context": "https://schema.org",
"@type": "FAQPage",
"name": "James Hardie Industries Announces Record Fourth Quarter And Fiscal Year 2021 Results FAQs",
"mainEntity": [
{
"@type": "Question",
"name": "What were James Hardie Industries' fourth quarter results for FY21?",
"acceptedAnswer": {
"@type": "Answer",
"text": "James Hardie reported a 20% increase in global net sales to US$807 million and a 43% rise in Adjusted EBIT to US$173.1 million."
}
},
{
"@type": "Question",
"name": "What is the outlook for James Hardie Industries for FY22?",
"acceptedAnswer": {
"@type": "Answer",
"text": "The company expects Adjusted Net Income for FY22 to be between US$520 million and US$570 million."
}
},
{
"@type": "Question",
"name": "How did James Hardie's operating cash flow perform in FY21?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Operating cash flow reached a record US$786.9 million in FY21, a 74% increase from the previous year."
}
},
{
"@type": "Question",
"name": "What factors contributed to James Hardie's strong Q4 FY21 performance?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Strong sales growth in North America, effective LEAN manufacturing initiatives, and improved supply chain integration contributed to the strong performance."
}
},
{
"@type": "Question",
"name": "What are the key financial metrics for James Hardie for Q4 FY21?",
"acceptedAnswer": {
"@type": "Answer",
"text": "For Q4 FY21, net sales were US$807 million, Adjusted EBIT was US$173.1 million, and the Adjusted EBIT margin was 21.4%."
}
}
]
}
FAQ
What were James Hardie Industries' fourth quarter results for FY21?
James Hardie reported a 20% increase in global net sales to US$807 million and a 43% rise in Adjusted EBIT to US$173.1 million.
What is the outlook for James Hardie Industries for FY22?
The company expects Adjusted Net Income for FY22 to be between US$520 million and US$570 million.
How did James Hardie's operating cash flow perform in FY21?
Operating cash flow reached a record US$786.9 million in FY21, a 74% increase from the previous year.
What factors contributed to James Hardie's strong Q4 FY21 performance?
Strong sales growth in North America, effective LEAN manufacturing initiatives, and improved supply chain integration contributed to the strong performance.
What are the key financial metrics for James Hardie for Q4 FY21?
For Q4 FY21, net sales were US$807 million, Adjusted EBIT was US$173.1 million, and the Adjusted EBIT margin was 21.4%.
JAMES HARDIE INDUSTRIES plc.
NYSE:JHXJHX RankingsJHX Latest NewsJHX Stock Data | |||||||||