Exhibit 99.2
For analyst and media enquiries, please
call Sean OSullivan on +61 2 82745239
27 May 2010
4th quarter net operating profit US$23.7m
Full year net operating profit US$133.0m
(Excluding asbestos, ASIC expenses and tax adjustments)
James Hardie today announced a US$23.7 million net operating profit, excluding asbestos,
ASIC expenses and tax adjustments, for the quarter ended 31 March 2010. This represents an
increase of 208% compared to the corresponding quarter of last year.
The net operating result for the fourth quarter including asbestos, ASIC expenses and tax
adjustments was a loss of US$2.3 million, compared to a loss of US$129.6 million for the
corresponding quarter of last year.
Full year net operating profit excluding asbestos, ASIC expenses and tax adjustments
increased 32% to US$133.0 million from US$100.5 million for the prior year. Including
asbestos, ASIC expenses and tax adjustments, full year net operating profit moved from
US$136.3 million to a loss of US$84.9 million.
The results include unfavourable asbestos adjustments of US$24.2 million for the quarter and
US$224.2 million for the full year, which are primarily attributable to the appreciation of
the Australian dollar against the US dollar. For the quarter from 31 December 2009 to 31
March 2010, the Australian dollar appreciated against the US dollar by 2% to US$0.9158. For
the full year from 31 March 2009 to 31 March 2010, the Australian dollar appreciated against
the US dollar by 33%, compared to a 25% depreciation in the prior year.
Excluding a contribution to the AICF of US$110.0 million in fiscal 2009, net operating cash
flow for the full year increased to US$183.1 million from US$64.8 million in the prior year.
The company will make a funding contribution of approximately US$63.7 million to the AICF on
1 July 2010 representing 35% of the companys free cash flow, as defined by the A FFA.
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 ASIC expenses and domicile change related costs). Unless otherwise stated, results
and comparisons are of the 4th quarter and full year of fiscal year 2010 versus
the 4th quarter and full year of the prior fiscal year.
Media
Release: James Hardie 4th Quarter and Full Year FY10
1
CEO
Commentary
US sales volume rose in the quarter compared to the same quarter last year for the first
time in four years, suggesting that the bottom of the downturn may have been reached, said
James Hardie CEO, Mr Louis Gries.
The extent and rate of the US recovery still remains uncertain. Additionally, over the last
several months we have started to incur higher raw material, freight and energy costs.
Despite these increases, the US business continues to perform well financially, Mr Gries
added. Funding for growth initiatives has been increased and the company is well positioned
to drive its long-term strategy.
Operating Performance
Total sales for the quarter increased 14% to US$274.9 million, gross profit was up 32% to
US$91.4 million and EBIT excluding asbestos and ASIC expenses was 124% higher at US$38.3
million compared to the corresponding period of last year. EBIT including asbestos and ASIC
expenses for the quarter improved from a loss US$160.4 million in the fourth quarter of last
year to US$11.8 million in the final quarter.
For the full year, total sales decreased 6% to US$1,124.6 million, gross profit was up 7% to
US$416.1 million and EBIT excluding asbestos and ASIC expenses was 22% higher at US$208.7
million. EBIT including asbestos and ASIC expenses moved from US$173.6 million to a loss of
US$21.0 million.
4th Quarter and Year End at a Glance
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Q4 |
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Q4 |
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% |
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% |
US$ Millions |
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FY 2010 |
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FY 2009 |
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Change |
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FY 2010 |
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FY 2009 |
|
Change |
|
Net sales |
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$ |
274.9 |
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$ |
241.3 |
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14 |
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$ |
1,124.6 |
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$ |
1,202.6 |
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(6 |
) |
Gross profit |
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|
91.4 |
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|
|
69.2 |
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32 |
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416.1 |
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388.8 |
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7 |
|
EBIT excluding asbestos and
ASIC expenses |
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38.3 |
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17.1 |
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124 |
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208.7 |
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170.9 |
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22 |
|
AICF SG&A expenses |
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(0.5 |
) |
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0.7 |
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(2.1 |
) |
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(0.7 |
) |
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|
Asbestos adjustments |
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(24.2 |
) |
|
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(176.5 |
) |
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86 |
|
|
|
|
(224.2 |
) |
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17.4 |
|
|
|
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|
ASIC expenses |
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(1.8 |
) |
|
|
(1.7 |
) |
|
|
(6 |
) |
|
|
|
(3.4 |
) |
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|
(14.0 |
) |
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|
76 |
|
EBIT |
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|
11.8 |
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|
|
(160.4 |
) |
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|
|
|
|
|
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(21.0 |
) |
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173.6 |
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Net interest expense |
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(2.1 |
) |
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(1.1 |
) |
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(91 |
) |
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(4.0 |
) |
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(3.0 |
) |
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(33 |
) |
Other income (expense) |
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0.3 |
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(14.8 |
) |
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6.3 |
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(14.8 |
) |
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|
Income tax (expense) benefit |
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(12.3 |
) |
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46.7 |
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(66.2 |
) |
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(19.5 |
) |
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Net operating profit (loss) |
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(2.3 |
) |
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(129.6 |
) |
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98 |
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|
|
(84.9 |
) |
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136.3 |
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Diluted earnings (loss) per share
(US cents) |
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(0.5 |
) |
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(30.0 |
) |
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98 |
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(19.6 |
) |
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31.4 |
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|
Media
Release: James Hardie 4th Quarter and Full Year FY10
2
Net operating profit excluding asbestos, ASIC expenses and tax adjustments increased
208% for the quarter to US$23.7 million, and 32% to US$133.0 million for the full year, as
shown in the following table:
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Q4 |
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Q4 |
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% |
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% |
US$ Millions |
|
FY 2010 |
|
FY 2009 |
|
Change |
|
|
FY 2010 |
|
FY 2009 |
|
Change |
|
Net operating profit (loss) |
|
$ |
(2.3 |
) |
|
$ |
(129.6 |
) |
|
|
(98 |
) |
|
|
$ |
(84.9 |
) |
|
$ |
136.3 |
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Excluding: |
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Asbestos: |
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|
|
|
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Asbestos adjustments |
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|
24.2 |
|
|
|
176.5 |
|
|
|
(86 |
) |
|
|
|
224.2 |
|
|
|
(17.4 |
) |
|
|
|
|
AICF SG&A expenses |
|
|
0.5 |
|
|
|
(0.7 |
) |
|
|
|
|
|
|
|
2.1 |
|
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|
0.7 |
|
|
|
|
|
AICF interest income |
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(0.7 |
) |
|
|
(1.6 |
) |
|
|
56 |
|
|
|
|
(3.3 |
) |
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|
(6.4 |
) |
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|
48 |
|
(Gain) impairment on AICF investments |
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|
(2.0 |
) |
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|
14.8 |
|
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|
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(6.7 |
) |
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|
14.8 |
|
|
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|
Tax benefit related to asbestos
adjustments |
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|
1.1 |
|
|
|
(48.7 |
) |
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|
1.1 |
|
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|
(48.7 |
) |
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|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
ASIC expenses |
|
|
1.8 |
|
|
|
1.7 |
|
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|
6 |
|
|
|
|
3.4 |
|
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|
14.0 |
|
|
|
(76 |
) |
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Tax adjustments |
|
|
1.1 |
|
|
|
(4.7 |
) |
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|
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(2.9 |
) |
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|
7.2 |
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|
Net operating profit excluding asbestos,
ASIC expenses and tax adjustments |
|
$ |
23.7 |
|
|
$ |
7.7 |
|
|
|
|
|
|
|
$ |
133.0 |
|
|
$ |
100.5 |
|
|
|
32 |
|
|
|
|
|
Diluted earnings per share excluding
asbestos, ASIC expenses and tax
adjustments (US cents) |
|
|
5.4 |
|
|
|
1.8 |
|
|
|
|
|
|
|
|
30.5 |
|
|
|
23.1 |
|
|
|
32 |
|
|
|
|
|
Diluted earnings per share excluding asbestos, ASIC expenses and tax adjustments for the
quarter increased 200% to US5.4 cents and for the full year increased 32% from US23.1 cents
in the prior year to US30.5 cents in the current year.
The strength of net operating cash flow in the quarter and full year ended 31 March 2010
enabled the company to reduce net debt by US$6.0 million and US$146.8 million respectively.
As at 31 March 2010, the company had net debt of US$134.8 million.
USA and Europe Fibre Cement
According to the US Census Bureau, single family housing starts in the quarter ended 31 March
2010 were 114,300, compared to the March 2009 figure of 78,300. Annualised
seasonally-adjusted single family housing starts in March 2010 were 531,000, still
significantly below the January 2006 peak of 1.823 million annualised starts, but 11% above
the trough of 479,000 in April 2009.
Against this background, net sales increased 4% in the quarter to US$196.8 million compared
to the corresponding quarter of last year. Fourth quarter sales volume increased 2% to 314.0
million square feet. The average net sales price increased 2% from US$612 to US$627 per
thousand square feet.
For the full year, net sales declined 11% to US$828.1 million, compared to the prior year.
Sales volume decreased 15% to 1,303.7 million square feet, and the average net sales price
increased 4% from US$609 to US$635 per thousand square feet.
USA and Europe Fibre Cement EBIT increased by 8% to US$34.8 million for the quarter and by 5%
to US$208.5 million for the full year. The increase in full year EBIT was driven by lower
input costs (primarily pulp, energy and freight), higher average net sales price and improved
plant performance which contributed to lower average unit manufacturing costs. The USA and
Europe Fibre Cement EBIT margin was 17.7% for the quarter and 25.2% for the full year,
compared to 17.1% and 21.4%, respectively, for the corresponding periods of the prior year.
Media
Release: James Hardie 4th Quarter and Full Year FY10
3
Asia Pacific Fibre Cement
Net sales increased 49% to US$78.1 million for the quarter. The higher value of the Asia
Pacific business currencies against the US dollar in the fourth quarter accounted for 39% of
the increase. In Australian dollars, net sales increased 10% due to an increase in sales
volume.
For the full year, net sales increased 9% to US$296.5 million, compared to US$273.3 million
for the prior corresponding period. In Australian dollars, net sales increased 2% due to an
increase in average net sales price.
Results for the Australian business improved in the quarter, due to an increase in sales
volume, driven by growing demand in the small-to-medium-size-builder and renovations segments
as well as a strengthening local housing construction market. For the full year, sales volume
was stable.
Australian Bureau of Statistics (ABS) data for the March quarter showed residential housing
approvals increased 45% compared to the corresponding quarter of the prior year, with
detached housing approvals up 36% and medium density approvals up 98% compared to the fourth
quarter of the prior year. For the full year, the ABS reported a 16% increase in housing
approvals compared to the prior year.
The New Zealand business also improved in the quarter, supported by a stronger operating
environment, with housing consents increasing 32% compared to the March quarter of 2009. The
Philippines business increased sales in the quarter by 23%, driven largely by stronger repair
and remodel sales.
Asia Pacific Fibre Cement EBIT for the quarter increased 113% from US$6.7 million to US$14.3
million. Favourable currency exchange rate movements in the Asia Pacific business currencies
compared to the US dollar accounted for 77% of this increase. In Australian dollars, Asia
Pacific Fibre Cement EBIT for the quarter increased 36% due to increased sales volume, the
growth in sales of higher-margin differentiated products and reduced raw material and
manufacturing costs.
Asia Pacific Fibre Cement EBIT for the full year increased 25% from US$47.1 million to
US$58.7 million. In Australian dollars, Asia Pacific Fibre Cement EBIT for the year increased
14% due to strong primary demand growth offsetting weakened local markets, an increase in
average net sales price and favourable product mix shift, together with lower raw materials
costs and reduced manufacturing costs.
Re-domicile
The company completed Stage 1 of the two-stage Proposal to transform to a Societas Europaea
company and move its corporate domicile from The Netherlands to Ireland (the Proposal) on 19
February 2010 and was transformed from a Dutch NV company to a Dutch SE company and now
operates under the name of James Hardie Industries Societas Europaea (JHI SE). If
shareholders approve Stage 2 of the Proposal, JHI SE will become subject to Irish law in
addition to the SE Regulation.
An Extraordinary General Meeting to consider Stage 2 of the Proposal will be held in The
Netherlands on 2 June 2010. Before this, an Extraordinary Information Meeting will be held in
Sydney on 28 May 2010. If shareholders approve Stage 2, the company anticipates that the
Proposal will be implemented in June 2010.
Media
Release: James Hardie 4th Quarter and Full Year FY10
4
Outlook
New housing construction activity in the US improved in the quarter with the US Census Bureau
reporting that the number of single family unit starts in the quarter to March 2010 were 9.2%
higher than the preceding December quarter and 46% higher than the March 2009 quarter.
Analysts remain confident that the US housing market will continue to improve in fiscal year
2011. However, severe challenges remain, including constrained credit conditions that are
restricting the availability of finance for prospective buyers and developers, a weak
employment market, and a continuing supply of foreclosed homes.
Asia Pacific markets that James Hardie participates in are likely to be somewhat better in
fiscal year 2011 than in fiscal year 2010.
Operating costs are expected to be higher as market demand drives upward pressure on basic
commodity prices.
Despite higher costs, the company expects to deliver good financial returns in current market
conditions, and at the same time increase spending on long-term product and market
initiatives.
Further Information
Readers are referred to the companys Consolidated Financial Statements and Managements
Analysis of Results for the period ended 31 March 2010 for additional information regarding
the companys results, including information regarding income taxes, asbestos and contingent
liabilities.
Changes in the companys asbestos liability (including 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 companys
Consolidated Financial Statements. Readers are referred to Notes 11, 13 and 14 of the
companys 31 March 2010 Consolidated Financial Statements for more information about the
companys asbestos liability, ASIC proceedings and income tax related issues, respectively.
END
Media/Analyst Enquiries:
|
|
|
Sean O Sullivan
|
|
Telephone: +61 2 8274 5239 |
Vice President Investor and Media Relations
|
|
Email: [email protected] |
This Media Release forms part of a package of information about the companys results. It
should be read in conjunction with the other parts of the package, including Managements
Analysis of Results, the Management Presentation and the Consolidated Financial Statements.
These documents, along with a webcast of the Management Presentation on 27 May 2010, are
available from the Investor Relations area of James Hardies
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 companys securities may receive, on request, a hard copy of our complete
audited financial statements, free of charge. Requests can be made via the Investor
Relations area of the companys website or by contacting one of the companys corporate
offices. Contact details are available on the companys website.
Media
Release: James Hardie 4th Quarter and Full Year 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 companys 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 4th Quarter and Full Year 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.
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Q4 |
|
Q4 |
|
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|
US$ Millions |
|
FY 2010 |
|
FY 2009 |
|
FY 2010 |
|
FY 2009 |
|
EBIT |
|
$ |
11.8 |
|
|
$ |
(160.4 |
) |
|
$ |
(21.0 |
) |
|
$ |
173.6 |
|
|
|
|
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|
Asbestos: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asbestos adjustments |
|
|
24.2 |
|
|
|
176.5 |
|
|
|
224.2 |
|
|
|
(17.4 |
) |
AICF SG&A expenses |
|
|
0.5 |
|
|
|
(0.7 |
) |
|
|
2.1 |
|
|
|
0.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASIC expenses |
|
|
1.8 |
|
|
|
1.7 |
|
|
|
3.4 |
|
|
|
14.0 |
|
|
|
|
EBIT excluding asbestos and ASIC expenses |
|
|
38.3 |
|
|
|
17.1 |
|
|
|
208.7 |
|
|
|
170.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
274.9 |
|
|
$ |
241.3 |
|
|
$ |
1,124.6 |
|
|
$ |
1,202.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT margin excluding asbestos and
ASIC expenses |
|
|
13.9 |
% |
|
|
7.1 |
% |
|
|
18.6 |
% |
|
|
14.2 |
% |
|
|
|
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 |
|
Q4 |
|
|
|
|
US$ Millions |
|
FY 2010 |
|
FY 2009 |
|
FY 2010 |
|
FY 2009 |
|
Net operating (loss) profit |
|
$ |
(2.3 |
) |
|
$ |
(129.6 |
) |
|
$ |
(84.9 |
) |
|
$ |
136.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asbestos: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asbestos adjustments |
|
|
24.2 |
|
|
|
176.5 |
|
|
|
224.2 |
|
|
|
(17.4 |
) |
AICF SG&A expenses |
|
|
0.5 |
|
|
|
(0.7 |
) |
|
|
2.1 |
|
|
|
0.7 |
|
AICF interest income |
|
|
(0.7 |
) |
|
|
(1.6 |
) |
|
|
(3.3 |
) |
|
|
(6.4 |
) |
(Gain) impairment on AICF investments |
|
|
(2.0 |
) |
|
|
14.8 |
|
|
|
(6.7 |
) |
|
|
14.8 |
|
Tax expense (benefit) related to asbestos
adjustments |
|
|
1.1 |
|
|
|
(48.7 |
) |
|
|
1.1 |
|
|
|
(48.7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASIC expenses |
|
|
1.8 |
|
|
|
1.7 |
|
|
|
3.4 |
|
|
|
14.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax adjustments |
|
|
1.1 |
|
|
|
(4.7 |
) |
|
|
(2.9 |
) |
|
|
7.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating profit excluding asbestos,
ASIC expenses and tax adjustments |
|
$ |
23.7 |
|
|
$ |
7.7 |
|
|
$ |
133.0 |
|
|
$ |
100.5 |
|
|
|
|
Media
Release: James Hardie 4th Quarter and Full Year 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 companys
management uses this non-US GAAP measure for the same purposes.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 |
|
Q4 |
|
|
|
|
US$ Millions |
|
FY 2010 |
|
FY 2009 |
|
FY 2010 |
|
FY 2009 |
|
Net operating profit excluding asbestos,
ASIC expenses and tax adjustments |
|
$ |
23.7 |
|
|
$ |
7.7 |
|
|
$ |
133.0 |
|
|
$ |
100.5 |
|
Weighted
average common shares outstanding Diluted (millions) |
|
|
438.9 |
|
|
|
435.6 |
|
|
|
436.8 |
|
|
|
434.5 |
|
|
|
|
Diluted earnings per share excluding asbestos,
ASIC expenses and tax adjustments (US cents) |
|
|
5.4 |
|
|
|
1.8 |
|
|
|
30.5 |
|
|
|
23.1 |
|
|
|
|
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 companys management uses this non-US GAAP measure for the same
purposes.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 |
|
Q4 |
|
|
|
|
US$ Millions |
|
FY 2010 |
|
FY 2009 |
|
FY 2010 |
|
FY 2009 |
|
Operating profit (loss) before income taxes |
|
$ |
10.0 |
|
|
$ |
(176.3 |
) |
|
$ |
(18.7 |
) |
|
$ |
155.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asbestos: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asbestos adjustments |
|
|
24.2 |
|
|
|
176.5 |
|
|
|
224.2 |
|
|
|
(17.4 |
) |
AICF SG&A expenses |
|
|
0.5 |
|
|
|
(0.7 |
) |
|
|
2.1 |
|
|
|
0.7 |
|
AICF interest income |
|
|
(0.7 |
) |
|
|
(1.6 |
) |
|
|
(3.3 |
) |
|
|
(6.4 |
) |
(Gain) impairment on AICF investments |
|
|
(2.0 |
) |
|
|
14.8 |
|
|
|
(6.7 |
) |
|
|
14.8 |
|
|
|
|
Operating profit before income taxes excluding
asbestos |
|
$ |
32.0 |
|
|
$ |
12.7 |
|
|
$ |
197.6 |
|
|
$ |
147.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (expense) benefit |
|
|
(12.3 |
) |
|
|
46.7 |
|
|
|
(66.2 |
) |
|
|
(19.5 |
) |
Tax expense (benefit) related to asbestos adjustments |
|
|
1.1 |
|
|
|
(48.7 |
) |
|
|
1.1 |
|
|
|
(48.7 |
) |
Tax adjustments |
|
|
1.1 |
|
|
|
(4.7 |
) |
|
|
(2.9 |
) |
|
|
7.2 |
|
|
|
|
Income tax expense excluding tax adjustments |
|
|
(10.1 |
) |
|
|
(6.7 |
) |
|
|
(68.0 |
) |
|
|
(61.0 |
) |
|
|
|
Effective tax rate excluding asbestos and
tax adjustments |
|
|
31.6 |
% |
|
|
52.8 |
% |
|
|
34.4 |
% |
|
|
41.4 |
% |
|
|
|
Media
Release: James Hardie 4th Quarter and Full Year FY10
8
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 companys earnings from its core business operations to satisfy its debt,
capital expenditure and working capital requirements.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 |
|
Q4 |
|
|
|
|
US$ Millions |
|
FY 2010 |
|
FY 2009 |
|
FY 2010 |
|
FY 2009 |
|
EBIT |
|
$ |
11.8 |
|
|
$ |
(160.4 |
) |
|
$ |
(21.0 |
) |
|
$ |
173.6 |
|
Depreciation and amortisation |
|
|
16.1 |
|
|
|
14.8 |
|
|
|
61.7 |
|
|
|
56.4 |
|
|
|
|
EBITDA |
|
$ |
27.9 |
|
|
$ |
(145.6 |
) |
|
$ |
40.7 |
|
|
$ |
230.0 |
|
|
|
|
General
corporate costs excluding ASIC expenses and domicile change related costs
General corporate costs excluding ASIC and domicile change related costs is not a measure of
financial performance under US GAAP and expenses 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 |
|
Q4 |
|
|
|
|
US$ Millions |
|
FY 2010 |
|
FY 2009 |
|
FY 2010 |
|
FY 2009 |
|
General corporate costs |
|
$ |
8.5 |
|
|
$ |
19.4 |
|
|
$ |
42.9 |
|
|
$ |
70.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASIC expenses |
|
|
(1.8 |
) |
|
|
(1.7 |
) |
|
|
(3.4 |
) |
|
|
(14.0 |
) |
Domicile change related costs |
|
|
(0.7 |
) |
|
|
(7.8 |
) |
|
|
(9.1 |
) |
|
|
(10.3 |
) |
|
|
|
General corporate costs excluding ASIC
expenses and domicile change related costs |
|
$ |
6.0 |
|
|
$ |
9.9 |
|
|
$ |
30.4 |
|
|
$ |
46.3 |
|
|
|
|
Media
Release: James Hardie 4th Quarter and Full Year FY10
9
Disclaimer
This Media Release contains forward-looking statements. James Hardie may from time to
time make forward-looking statements in its periodic reports filed with or furnished to the
United States Securities and Exchange Commission on Forms 20-F and 6-K, in the annual reports
to shareholders, in offering circulars, invitation memoranda and prospectuses, in media
releases and other written materials and in oral statements made by the companys 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 Harbour Provisions of the Private Securities Litigation Reform Act of 1995.
Examples of forward-looking statements include:
|
|
statements about the companys future performance; |
|
|
|
projections of the companys results of operations or financial condition; |
|
|
|
statements regarding the companys plans, objectives or goals, including
those relating to its strategies, initiatives, competition, acquisitions, dispositions
and/or its products; |
|
|
|
expectations concerning the costs associated with the suspension or closure
of operations at any of the companys plants and future plans with respect to any such
plants; |
|
|
|
expectations that the companys credit facilities will be extended or
renewed; |
|
|
|
expectations concerning dividend payments; |
|
|
|
statements concerning the companys corporate and tax domiciles and potential
changes to them, including potential tax charges; |
|
|
|
statements regarding tax liabilities and related audits, reviews and
proceedings; |
|
|
|
statements as to the possible consequences of proceedings brought against the
company and certain of its 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 the companys 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 the companys 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, any shortfall in the AICF and the effect of currency exchange rate movements on the
amount recorded in the companys financial statements as an asbestos liability; compliance
with and changes in tax laws and treatments; competition and product pricing in the markets
in which the company operates; 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 customers inability to pay; compliance with and
changes in environmental and health and safety laws; risks of conducting business
internationally; the companys proposal to transfer its 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 the companys customer base on
large format retail customers, distributors and dealers; the effect of natural disasters;
changes in the companys key management personnel; inherent limitations on internal controls;
use of accounting estimates; and all other risks identified in the companys reports filed
with Australian, Dutch and US securities agencies and exchanges (as appropriate). The company
cautions 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 the companys current expectations concerning future results, events and
conditions.
Media
Release: James Hardie 4th Quarter and Full Year FY10
10