Exhibit 99.1
For analyst and media enquiries please
call Sean O’ Sullivan on: +61 2 8274 5239
1st quarter net operating profit US$41.6m
(Excluding asbestos, ASIC expenses and tax adjustments)
James Hardie today announced a US$41.6 million net operating profit, excluding asbestos, ASIC
expenses and tax adjustments, for the quarter ended 30 June 2009, an increase of 4% compared
to the same period last year.
For the first quarter, net operating loss including asbestos, ASIC expenses and tax
adjustments was US$77.9 million, compared to a profit of US$1.4 million for the same quarter
last year. Included in the current period result are unfavourable asbestos adjustments of
US$119.8 million, solely attributable to the movement in the A$/US$ exchange rate, from 0.6872
at 31 March 2009 to 0.8126 at 30 June 2009.
Top line results continue to reflect weakness in housing construction activity in the US and
general economic conditions, where sales declined compared to sales in the corresponding
quarter of the previous year.
According to the US National Association of Home Builders (NAHB), seasonally-adjusted US
housing starts in June 2009 were at an annualised rate of 582,000, 46% below the June 2008
rate and down 74% from the January 2006 peak of 2.265 million annualised starts.
Operating Performance
Total sales for the first quarter decreased 22% to US$284.5 million, gross profit was down 11%
to US$110.4 million and EBIT excluding asbestos and ASIC expenses was 3% lower at US$63.8
million, compared to the same period last year. EBIT including asbestos and ASIC expenses for
the first quarter moved from EBIT of US$22.9 million in fiscal year 2009 to EBIT loss of
US$57.1 million, in the current year.
Despite a decrease of 21% in net sales in the USA and Europe Fibre Cement business for the
quarter compared to the corresponding quarter of the prior fiscal year, EBIT was 5% higher at
US$68.8 million for the current quarter, as a result of lower average unit manufacturing
costs, lower freight costs, decreased SG&A spending, improved plant performance and an
increase in average net sales price.
In this Media Release, James Hardie may present financial measures, sales volume terms,
financial ratios, and Non-US GAAP financial measures included in the Definitions section of
this document starting on page 6. The company presents financial measures that it believes are
customarily used by its Australian investors. Specifically, these financial measures, which
are equivalent to or derived from certain US GAAP measures as explained in the definitions,
include “EBIT”, “EBIT margin”, “Operating profit” and “Net operating profit”. The company may
also present other terms for measuring its sales volume (“million square feet” or “mmsf” and
“thousand square feet” or “msf”); financial ratios (“Gearing ratio”, “Net interest expense
cover”, “Net interest paid cover”, “Net debt payback”, “Net debt (cash)”); and Non-US GAAP
financial measures (“EBIT excluding asbestos and ASIC expenses”, “EBIT margin excluding
asbestos and ASIC expenses”, “Net operating profit excluding asbestos, ASIC expenses and tax
adjustments”, “Diluted earnings per share excluding asbestos, ASIC expenses and tax
adjustments”, “Operating profit before income taxes excluding asbestos”, “Effective tax rate
excluding asbestos and tax adjustments”, “EBITDA” and “General corporate costs excluding
domicile change related costs”). Unless otherwise stated, results and comparisons are of the
1st quarter of the current fiscal year versus the 1st quarter of the
prior fiscal year.
Media Release: James Hardie — 1st Quarter FY10
1
For the first quarter, Asia Pacific Fibre Cement net sales were down 26% and EBIT decreased
31% to US$10.9 million. The decreases were primarily due to unfavourable foreign exchange rate
movements of the Asia Pacific Fibre Cement business’ currencies compared to the US dollar and
lower gross margin performance partially offset by lower SG&A expenses.
Loss per share for the quarter was US18.0 cents compared to diluted earnings per share of
US0.3 cents in the same period last year.
Diluted earnings per share excluding asbestos, ASIC expenses and tax adjustments increased
from US9.3 cents in the first quarter of fiscal year 2009 to US9.6 cents for this quarter.
1st Quarter at a Glance
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Q1 |
|
Q1 |
|
% |
| US$ Millions |
|
FY 2010 |
|
FY 2009 |
|
Change |
| |
Net sales |
|
$ |
284.5 |
|
|
$ |
365.0 |
|
|
|
(22 |
) |
| |
Gross profit |
|
|
110.4 |
|
|
|
124.0 |
|
|
|
(11 |
) |
| |
EBIT excluding asbestos and ASIC expenses |
|
|
63.8 |
|
|
|
65.5 |
|
|
|
(3 |
) |
| |
AICF SG&A expenses |
|
|
(0.5 |
) |
|
|
(0.6 |
) |
|
|
17 |
|
| |
Asbestos adjustments |
|
|
(119.8 |
) |
|
|
(40.5 |
) |
|
|
— |
|
| |
ASIC expenses |
|
|
(0.6 |
) |
|
|
(1.5 |
) |
|
|
60 |
|
| |
EBIT |
|
|
(57.1 |
) |
|
|
22.9 |
|
|
|
— |
|
| |
Net interest expense |
|
|
(0.7 |
) |
|
|
(1.1 |
) |
|
|
36 |
|
| |
Other income |
|
|
4.8 |
|
|
|
— |
|
|
|
— |
|
| |
Income tax expense |
|
|
(24.9 |
) |
|
|
(20.4 |
) |
|
|
(22 |
) |
| |
Net operating (loss) profit |
|
|
(77.9 |
) |
|
|
1.4 |
|
|
|
— |
|
| |
Diluted (loss) earnings per share (US cents) |
|
|
(18.0 |
) |
|
|
0.3 |
|
|
|
— |
|
| |
Net operating profit excluding asbestos, ASIC expenses and tax adjustments increased 4% for
the quarter to US$41.6 million, as shown in the following table:
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Q1 |
|
Q1 |
|
% |
| US$ Millions |
|
FY 2010 |
|
FY 2009 |
|
Change |
| |
Net operating (loss) profit |
|
$ |
(77.9 |
) |
|
$ |
1.4 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asbestos: |
|
|
|
|
|
|
|
|
|
|
|
|
Asbestos adjustments |
|
|
119.8 |
|
|
|
40.5 |
|
|
|
— |
|
AICF SG&A expenses |
|
|
0.5 |
|
|
|
0.6 |
|
|
|
(17 |
) |
AICF interest income |
|
|
(0.7 |
) |
|
|
(0.9 |
) |
|
|
22 |
|
Gain on AICF investments |
|
|
(0.4 |
) |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASIC expenses |
|
|
0.6 |
|
|
|
1.5 |
|
|
|
(60 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax adjustments |
|
|
(0.3 |
) |
|
|
(3.1 |
) |
|
|
(90 |
) |
| |
| |
Net operating profit excluding asbestos,
ASIC expenses and tax adjustments |
|
$ |
41.6 |
|
|
$ |
40.0 |
|
|
|
4 |
|
| |
Diluted earnings per share excluding asbestos,
ASIC expenses and tax adjustments (US cents) |
|
|
9.6 |
|
|
|
9.3 |
|
|
|
3 |
|
| |
Media Release: James Hardie — 1st Quarter FY10
2
CEO Commentary
“While the US residential construction market appears to be ‘nearing the bottom’ it remains
too early to ascertain the timing, rate or extent of any potential recovery,” said James
Hardie CEO, Louis Gries.
“Earnings this quarter benefited from lower costs, particularly for pulp, energy and freight.
“Our priority remains to ensure that the company is positioned to drive its long-term
strategy, sustain earnings in a low demand environment, and retain the operational
flexibility to increase utilisation of capacity when a recovery eventuates,” Mr Gries added.
“Within this environment, the recent launch of our 7th generation climate-specific
range of HardieZoneTM fibre cement products and the increased penetration of the
ColorPlus® range of products demonstrates the company’s continued focus on product
leadership and innovation.”
USA and Europe Fibre Cement
First quarter net sales were down 21% compared to the same quarter last year, to US$223.2
million. Sales volume decreased 24% to 357.1 million square feet, and the average net sales
price increased 4% from US$601 to US$625 per thousand square feet.
Sales volume in the USA and Europe Fibre Cement business decreased 24% in the quarter
compared to the same period last year, reflecting a 27% decline in exterior products and a 9%
decline in interior products. Product demand was lower across all regions. This was primarily
a result of the ongoing weakness in the US housing market, where both new construction and
the repair and remodel segments of the market have continued to deteriorate.
EBIT for the quarter was 5% higher at US$68.8 million despite a 24% decrease in volume,
primarily due to lower average unit manufacturing costs, lower freight costs, decreased SG&A
spending, improved plant performance and an increase in the average net sales price. The EBIT
margin was 30.8% for the quarter compared to 23.3% for the corresponding period last year.
Asia Pacific Fibre Cement
Net sales decreased 26% to US$61.3 million for the quarter. In Australian dollars, net sales
decreased 8% due to a 13% decrease in sales volume, partially offset by a 5% increase in the
average Australian dollar net sales price.
The Australian Bureau of Statistics (ABS) data shows residential housing approvals down 18.4%
in the three months to June 2009 compared to the previous corresponding period, with detached
houses down 7% and medium density down 39%. The Queensland market, which is the strongest
regional market for James Hardie products, experienced the greatest decline at 37%.
In New Zealand, housing consents remain at 25-year lows. Within this context the New Zealand
business performance was solid with category share continuing to increase. A positive driver
for the business is differentiated products which now account for 47% of total sales volume.
Media Release: James Hardie — 1st Quarter FY10
3
Asia Pacific Fibre Cement EBIT was 31% lower for the quarter at US$10.9 million, mainly
driven by unfavourable currency exchange rate movements in the Asia Pacific business’
currencies compared to the US dollar. In Australian dollars, Asia Pacific Fibre Cement EBIT
decreased 13% for the quarter due to lower gross margin performance, partially offset by
lower SG&A expenses.
Cash Flow
Net operating cash flow for the quarter ended 30 June 2009 decreased from US$94.8 million in
the same quarter of the prior year to US$82.4 million. Capital expenditures for the purchase
of property, plant and equipment for the quarter ended 30 June 2009 increased to US$9.7
million, from US$3.8 million in the same quarter of the prior year.
The strength of free cash flow in the quarter enabled the company to reduce net debt by
US$53.3 million to US$228.3 million, compared to net debt at 31 March 2009.
Outlook
The US residential construction market is displaying initial signs that it is “nearing the
bottom” of the cycle. House sales have improved, albeit off a very low base, largely due to
the implementation of first-time home buyer tax credits and improvements in affordability.
Looking forward, however, the US housing market is facing continuing challenges including:
| § |
|
the expiry of the first-time home buyer tax credit in November; |
| |
| § |
|
a recent upturn in interest rates; |
| |
| § |
|
a continuing lack of credit for home buyers and for medium density housing developments; |
| |
| § |
|
tighter home loan lending standards; |
| |
| § |
|
a deteriorating employment market and |
| |
| § |
|
an excess supply of existing housing stock. |
These factors when combined will likely draw out any potential recovery phase of the cycle.
The US residential repair and remodel market has proved to be relatively resilient throughout
the downturn and, with some incremental improvement in consumer sentiment, is likely to
continue to outperform new construction. However, the latest industry projections are still
estimating declines on a year–on-year basis in the range of 7% to 9%. The repair and remodel
sector currently represents more than 50% of our US business.
In Australia, market forecasts are for a 14% drop in addressable housing starts in 2009-2010.
Queensland, the strongest market for James Hardie products, and Western Australia, are
expected to show the greatest rates of decline. The government stimulus package, the new
home owners’ grant, and improved affordability are helping to mitigate the severity of the
downturn, although the greatest effect of these initiatives is not expected to drive improved
demand for our products until the second half of our financial year.
New residential construction in New Zealand is anticipated to remain at the current historic
low levels of approximately 1,000 new housing approvals per month. The New Zealand business
is seeking to partially offset the market decline through an expansion of its product range
and by improving its share of the exterior cladding market.
Media Release: James Hardie — 1st Quarter FY10
4
The company notes the range of analysts’ forecasts for operating profit excluding asbestos,
for the year ending 30 March 2010 is between US$39 million and US$67 million. Management
anticipates full year earnings excluding Asbestos, ASIC expenses and costs of redomicile to
be around the top of the current range of analysts’ forecasts. Management cautions that
conditions remain uncertain and notes that the costs of some inputs, particularly pulp and
energy, have recently increased.
Changes in the company’s asbestos liability (to reflect changes in foreign exchange rates),
ASIC proceedings, income tax related issues and other matters referred to in the disclaimer
at the end of this document may have a material impact on the company’s condensed
consolidated financial statements. Readers are referred to Notes 6, 8 and 9 of the company’s
30 June 2009 Condensed Consolidated Financial Statements for more information about the
company’s asbestos liability, ASIC proceedings and income tax related issues.
Readers are referred to the company’s 30 June 2009 Condensed Consolidated Financial
Statements and the company’s 30 June 2009 Management’s Analysis of Results for additional
information regarding the company’s results, including information regarding income taxes,
asbestos and contingent liabilities.
END
Media/Analyst Enquiries:
Sean O’ Sullivan
Vice President Investor and Media Relations
This Media Release forms part of a package of information about the company’s results. It
should be read in conjunction with the other parts of the package, including Management’s
Analysis of Results, the Management Presentation and the Condensed Consolidated Financial
Statements.
These documents, along with a webcast of the management presentation on 18 August 2009, are
available from the Investor Relations area of James Hardie’s website at: www.jameshardie.com
The company routinely posts information that may be of importance to investors in the
Investor Relations section of its website, including press releases, financial results and
other information. The company encourages investors to consult this section of its website
regularly.
The company lodged its annual filing for the year ended 31 March 2009 with the SEC on 25 June
2009.
All holders of the company’s securities may receive, on request, a hard copy of our complete
audited financial statements, free of charge. Requests can be made via the company website
or by contacting one of the company’s corporate offices. Contact details are available on
the company’s website.
Media Release: James Hardie — 1st Quarter FY10
5
Definitions
Financial Measures – US GAAP equivalents
EBIT and EBIT margin – EBIT, as used in this document, is equivalent to the US GAAP
measure of operating income. EBIT margin is defined as EBIT as a percentage of net sales.
James Hardie believes EBIT and EBIT margin to be relevant and useful information as these are
the primary measures used by management to measure the operating profit or loss of its
business. EBIT is one of several metrics used by management to measure the earnings generated
by the company’s operations, excluding interest and income tax expenses. Additionally, EBIT
is believed to be a primary measure and terminology used by its Australian investors. EBIT
and EBIT margin should be considered in addition to, but not as a substitute for, other
measures of financial performance reported in accordance with accounting principles generally
accepted in the United States of America. EBIT and EBIT margin, as the company has defined
them, may not be comparable to similarly titled measures reported by other companies.
Operating profit – is equivalent to the US GAAP measure of income.
Net operating profit – is equivalent to the US GAAP measure of net income.
Sales Volume
mmsf – million square feet, where a square foot is defined as a standard square foot
of 5/16” thickness.
msf – thousand square feet, where a square foot is defined as a standard square foot
of 5/16” thickness.
Financial Ratios
Gearing Ratio – Net debt (cash) divided by net debt (cash) plus shareholders’ equity.
Net interest expense cover – EBIT divided by net interest expense.
Net interest paid cover – EBIT divided by cash paid during the period for interest,
net of amounts capitalised.
Net debt payback – Net debt (cash) divided by cash flow from operations.
Net debt (cash) – short-term and long-term debt less cash and cash equivalents.
Media Release: James Hardie — 1st Quarter FY10
6
Non-US GAAP Financial Measures
EBIT and EBIT margin excluding asbestos and ASIC expenses – EBIT and EBIT margin
excluding asbestos and ASIC expenses are not measures of financial performance under US GAAP
and should not be considered to be more meaningful than EBIT and EBIT margin. James Hardie
has included these financial measures to provide investors with an alternative method for
assessing its operating results in a manner that is focussed on the performance of its
ongoing operations and provides useful information regarding its financial condition and
results of operations. The company uses these non-US GAAP measures for the same purposes.
| |
|
|
|
|
|
|
|
|
| |
|
Q1 |
|
Q1 |
| US$ Millions |
|
FY 2010 |
|
FY 2009 |
| |
EBIT |
|
$ |
(57.1 |
) |
|
$ |
22.9 |
|
|
|
|
|
|
|
|
|
|
Asbestos: |
|
|
|
|
|
|
|
|
Asbestos adjustments |
|
|
119.8 |
|
|
|
40.5 |
|
AICF SG&A expenses |
|
|
0.5 |
|
|
|
0.6 |
|
ASIC expenses |
|
|
0.6 |
|
|
|
1.5 |
|
| |
|
|
| |
EBIT excluding asbestos and ASIC expenses |
|
|
63.8 |
|
|
|
65.5 |
|
|
|
|
|
|
|
|
|
|
Net Sales |
|
$ |
284.5 |
|
|
$ |
365.0 |
|
|
|
|
|
|
|
|
|
|
EBIT margin excluding asbestos and ASIC expenses |
|
|
22.4 |
% |
|
|
17.9 |
% |
| |
|
|
Net operating profit excluding asbestos, ASIC expenses and tax adjustments – Net
operating profit excluding asbestos, ASIC expenses and tax adjustments is not a measure of
financial performance under US GAAP and should not be considered to be more meaningful than
net income. The company has included this financial measure to provide investors with an
alternative method for assessing its operating results in a manner that is focussed on the
performance of its ongoing operations. The company uses this non-US GAAP measure for the same
purposes.
| |
|
|
|
|
|
|
|
|
| |
|
Q1 |
|
Q1 |
| US$ Millions |
|
FY 2010 |
|
FY 2009 |
| |
Net operating (loss) profit |
|
$ |
(77.9 |
) |
|
$ |
1.4 |
|
|
|
|
|
|
|
|
|
|
Asbestos: |
|
|
|
|
|
|
|
|
Asbestos adjustments |
|
|
119.8 |
|
|
|
40.5 |
|
AICF SG&A expenses |
|
|
0.5 |
|
|
|
0.6 |
|
AICF interest income |
|
|
(0.7 |
) |
|
|
(0.9 |
) |
Gain on AICF investments |
|
|
(0.4 |
) |
|
|
— |
|
ASIC expenses |
|
|
0.6 |
|
|
|
1.5 |
|
Tax adjustments |
|
|
(0.3 |
) |
|
|
(3.1 |
) |
| |
|
|
Net operating profit excluding asbestos, ASIC expenses and
tax adjustments |
|
$ |
41.6 |
|
|
$ |
40.0 |
|
| |
|
|
Media Release: James Hardie — 1st Quarter FY10
7
Diluted earnings per share excluding asbestos, ASIC expenses and tax adjustments –
Diluted earnings per share excluding asbestos, ASIC expenses and tax adjustments is not a
measure of financial performance under US GAAP and should not be considered to be more
meaningful than diluted earnings per share. The company has included this financial measure
to provide investors with an alternative method for assessing its operating results in a
manner that is focussed on the performance of its ongoing operations. The company’s
management uses this non-US GAAP measure for the same purposes.
| |
|
|
|
|
|
|
|
|
| |
|
Q1 |
|
Q1 |
| US$ Millions |
|
FY 2010 |
|
FY 2009 |
| |
Net operating profit excluding asbestos, ASIC expenses and tax adjustments |
|
$ |
41.6 |
|
|
$ |
40.0 |
|
Weighted average common shares outstanding — Diluted (millions) |
|
|
435.4 |
|
|
|
432.2 |
|
| |
|
|
Diluted earnings per share excluding asbestos, ASIC expenses and tax
adjustments (US cents) |
|
|
9.6 |
|
|
|
9.3 |
|
| |
|
|
Effective tax rate excluding asbestos and tax adjustments – Effective tax rate
excluding asbestos and tax adjustments is not a measure of financial performance under US
GAAP and should not be considered to be more meaningful than effective tax rate. The company
has included this financial measure to provide investors with an alternative method for
assessing its operating results in a manner that is focussed on the performance of its
ongoing operations. The company’s management uses this non-US GAAP measure for the same
purposes.
| |
|
|
|
|
|
|
|
|
| |
|
Q1 |
|
Q1 |
| US$ Millions |
|
FY 2010 |
|
FY 2009 |
| |
Operating (loss) profit before income taxes |
|
$ |
(53.0 |
) |
|
$ |
21.8 |
|
|
|
|
|
|
|
|
|
|
Asbestos: |
|
|
|
|
|
|
|
|
Asbestos adjustments |
|
|
119.8 |
|
|
|
40.5 |
|
AICF SG&A expenses |
|
|
0.5 |
|
|
|
0.6 |
|
AICF interest income |
|
|
(0.7 |
) |
|
|
(0.9 |
) |
Gain on AICF investments |
|
|
(0.4 |
) |
|
|
— |
|
| |
|
|
Operating profit before income taxes excluding asbestos |
|
$ |
66.2 |
|
|
$ |
62.0 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
(24.9 |
) |
|
|
(20.4 |
) |
Tax adjustments |
|
|
(0.3 |
) |
|
|
(3.1 |
) |
| |
|
|
Income tax expense excluding tax adjustments |
|
|
(25.2 |
) |
|
|
(23.5 |
) |
| |
|
|
Effective tax rate excluding asbestos and tax adjustments |
|
|
38.1 |
% |
|
|
37.9 |
% |
| |
|
|
EBITDA – is not a measure of financial performance under US GAAP and should not be
considered an alternative to, or more meaningful than, income from operations, net income or
cash flows as defined by US GAAP or as a measure of profitability or liquidity. Not all
companies calculate EBITDA in the same manner as James Hardie has and, accordingly, EBITDA
may not be comparable with other companies. The company has included information concerning
EBITDA because it believes that this data is commonly used by investors to evaluate the
ability of a company’s earnings from its core business operations to satisfy its debt,
capital expenditure and working capital requirements.
| |
|
|
|
|
|
|
|
|
| |
|
Q1 |
|
Q1 |
| US$ Millions |
|
FY 2010 |
|
FY 2009 |
| |
EBIT |
|
$ |
(57.1 |
) |
|
$ |
22.9 |
|
Depreciation and amortisation |
|
|
15.0 |
|
|
|
14.0 |
|
| |
|
|
EBITDA |
|
$ |
(42.1 |
) |
|
$ |
36.9 |
|
| |
|
|
Media Release: James Hardie — 1st Quarter FY10
8
General corporate costs excluding domicile change related costs – General corporate
costs excluding domicile change related costs is not a measure of financial performance under
US GAAP and should not be considered to be more meaningful than general corporate costs.
James Hardie has included these financial measures to provide investors with an alternative
method for assessing its operating results in a manner that is focussed on the performance of
its ongoing operations and provides useful information regarding its financial condition and
results of operations. The company uses these non-US GAAP measures for the same purposes.
| |
|
|
|
|
|
|
|
|
| |
|
Q1 |
|
Q1 |
| US$ Millions |
|
FY 2010 |
|
FY 2009 |
| |
General corporate costs |
|
$ |
12.5 |
|
|
$ |
12.4 |
|
|
|
|
|
|
|
|
|
|
Excluding: |
|
|
|
|
|
|
|
|
Domicile change related costs |
|
|
4.5 |
|
|
|
0.2 |
|
| |
|
|
General corporate costs excluding domicile change
Related costs |
|
$ |
8.0 |
|
|
$ |
12.2 |
|
| |
|
|
Media Release: James Hardie — 1st Quarter FY10
9
Disclaimer
This Media Release contains forward-looking statements. We may from time to time make
forward-looking statements in our periodic reports filed with or furnished to the United
States Securities and Exchange Commission on Forms 20-F and 6-K, in our annual reports to
shareholders, in offering circulars, invitation memoranda and prospectuses, in media releases
and other written materials and in oral statements made by our officers, directors or
employees to analysts, institutional investors, existing and potential lenders,
representatives of the media and others. Statements that are not historical facts are
forward-looking statements and such forward-looking statements are statements made pursuant
to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995.
Examples of forward-looking statements include:
| • |
|
statements about our future performance; |
| • |
|
projections of our results of operations or financial condition; |
| • |
|
statements regarding our plans, objectives or goals, including those relating to our
strategies, initiatives, competition, acquisitions, dispositions and/or our products; |
| • |
|
expectations concerning the costs associated with the suspension or closure of
operations at any of our plants and future plans with respect to any such plants; |
| • |
|
expectations that our credit facilities will be extended or renewed; |
| • |
|
expectations concerning dividend payments; |
| • |
|
statements concerning our corporate and tax domiciles and potential changes to them; |
| • |
|
statements regarding tax liabilities and related audits and proceedings; |
| • |
|
statements as to the possible consequences of proceedings brought against us and
certain of our former directors and officers by the ASIC; |
| • |
|
expectations about the timing and amount of contributions to the AICF, a special
purpose fund for the compensation of proven Australian asbestos-related personal injury
and death claims; |
| • |
|
expectations concerning indemnification obligations; and |
| • |
|
statements about product or environmental liabilities. |
Words such as “believe,” “anticipate,” “plan,” “expect,” “intend,” “target,” “estimate,”
“project,” “predict,” “forecast,” “guideline,” “aim,” “will,” “should,” “continue” and
similar expressions are intended to identify forward-looking statements but are not the
exclusive means of identifying such statements. Readers are cautioned not to place undue
reliance on these forward-looking statements and all such forward-looking statements are
qualified in their entirety by reference to the following cautionary statements.
Forward-looking statements are based on our estimates and assumptions and because
forward-looking statements address future results, events and conditions, they, by their very
nature, involve inherent risks and uncertainties. Such known and unknown risks, uncertainties
and other factors may cause our actual results, performance or other achievements to differ
materially from the anticipated results, performance or achievements expressed, projected or
implied by these forward-looking statements. These factors, some of which are discussed
under “Key Information — Risk Factors” beginning on page 6 of the Form 20-F filed with the US
Securities and Exchange Commission on 25 June 2009, include, but are not limited to: all
matters relating to or arising out of the prior manufacture of products that contained
asbestos by current and former James Hardie subsidiaries; required contributions to the AICF
and the effect of currency exchange rate movements on the amount recorded in our financial
statements as an asbestos liability; compliance with and changes in tax laws and treatments;
competition and product pricing in the markets in which we operate; the consequences of
product failures or defects; exposure to environmental, asbestos or other legal proceedings;
general economic and market conditions; the supply and cost of raw materials; the success of
research and development efforts; reliance on a small number of customers; a customer’s
inability to pay; compliance with and changes in environmental and health and safety laws;
risks of conducting business internationally; our proposal to transform to a Dutch “SE”
company and transfer our corporate domicile from The Netherlands to Ireland to become an
Irish “SE” company; compliance with and changes in laws and regulations; currency exchange
risks; the concentration of our customer base on large format retail customers, distributors
and dealers; the effect of natural disasters; changes in our key management personnel;
inherent limitations on internal controls; use of accounting estimates; and all other risks
identified in our reports filed with Australian, Dutch and US securities agencies and
exchanges (as appropriate). We caution you that the foregoing list of factors is not
exhaustive and that other risks and uncertainties may cause actual results to differ
materially from those in forward-looking statements. Forward-looking statements speak only
as of the date they are made and are statements of our current expectations concerning future
results, events and conditions.
Media Release: James Hardie — 1st Quarter FY10
10
