Exhibit 99.1

Results for Announcement to the Market

Dividend Information

•		A final dividend of US3.0 cents per share/CUFS is payable to share/CUFS holders on 1 July 2004. An interim dividend of US2.5 cents per share/CUFS was paid on 16 December 2003.
•		Record Date 10 June 2004 is used to determine entitlements to final dividend to share/CUFS holders (ie. On the basis of proper instruments of transfer received by the Company’s registrar, Computershare Investor Services Pty Ltd, Level 3, 60 Carrington Street, Sydney NSW 2000, Australia, by 5.00pm if securities are not CHESS approved, or security holding balances established by 5.00pm or such later time permitted by SCH Business Rules if securities are CHESS approved).
•		This dividend and future dividends will be unfranked for Australian taxation purposes.
•		This dividend is subject to Dutch withholding tax of 25%. Many Australian resident holders may reduce the withholding tax rate to 15% deduction if they are eligible and have completed and lodged a current special Form A before dividend record date with the Company’s registrar, Computershare Investor Services Pty Ltd, Level 3, 60 Carrington Street, Sydney NSW 2000, Australia. Holders with 25% withholding tax may be eligible to reclaim a portion of the tax after payment date. For withholding tax information see: www.jameshardie.com (select Investor Relations, then Shareholder services then Tax Information) or contact Computershare.
•		The Australian currency equivalent amount of dividend to be paid to CUFS holders will be announced to the ASX on 11 June 2004.
•		No dividend reinvestment plans are available for this dividend.

Audit

The results and financial information included within this Preliminary Final Report have been prepared using USGAAP and have been subject to an independent audit by external auditors.

Results for the 4^th Quarter and Full Year ended 31 March 2004

Contents

	1.		Media Release
	2.		Results At A Glance
	3.		Management’s Discussion and Analysis for 4th Quarter and Full Year
	4.		Management Presentation
	5.		Financial Report

Incorporated in The Netherlands with corporate seat in Amsterdam. The liability of members is limited.

4^th Qtr Operating Profit Up 35% to US$31.3 million

James Hardie today announced a 35% increase in operating profit from continuing operations to US$31.3 million for the three months ended 31 March 2004. Operating profit from continuing operations for the full year was up 50% to US$125.3 million.

Among the 4^th quarter highlights, net sales increased 29%, gross profit was up 16% and EBIT² increased 25% to US$34.8 million.

The USA Fibre Cement business continued to generate strong growth, lifting net sales 27% and EBIT² 14% in the quarter, and by 23% and 26% respectively for the full year.

Australia and New Zealand Fibre Cement increased net sales and EBIT², while the Philippines Fibre Cement business delivered another positive EBIT² in both the quarter and full year.

For the full year, total company net sales increased 25%, gross profit was up 23% and EBIT² increased 34% to US$172.2 million.

Basic earnings per share from continuing operations increased 33% for the quarter, from US 5.1 cents to US 6.8 cents, and 50% for the full year, from US 18.3 cents to US 27.4 cents.

Net operating profit including discontinued operations was down in both the quarter and full year because the prior year number included a profit of US$84.0 million related primarily to the sale of our former Gypsum assets.

4^th Quarter and Year-to-Date at a Glance – US$ Million

Unless otherwise stated, results are for continuing operations only and comparisons are of the 4^th quarter of the current fiscal year versus the 4^th quarter of the prior fiscal year.

Dividend and Capital Management

The company has announced plans today for a final dividend of US 3.0 cents a share, an increase of US 0.5 cents on last year’s dividend. The dividend will be paid on 1 July 2004 to shareholders registered on 10 June 2004.

“The increased dividend reflects our confidence in the strong growth potential of our fibre cement business,” Mr Macdonald said.

The company’s cash flows continue to exceed its capital requirements. The gearing ratio at 17% at year-end, is well below the long-term target of 40%, and interest cover at 17x is well in excess of debt covenant requirements.

As a result, the company remains committed to returning surplus capital to shareholders in the most efficient manner possible.

However, the Dutch tax authorities have recently ruled that future reductions of capital will attract a 10% withholding tax that did not apply to previous reductions of capital.

Additionally, the company believes that it would be inappropriate to proceed with a return of capital to shareholders during the current NSW Special Commission of Inquiry.

Consequently, James Hardie has deferred its decision on future capital management initiatives until later this year.

Operations Commentary

James Hardie’s CEO, Peter Macdonald said: “The fourth quarter results have capped off another very successful year and results so far this year suggest that the strong growth momentum of the previous year is continuing and that a another good year is in prospect.

“Demand for our products in North America continues to grow strongly, significantly outpacing the rate of housing construction growth.

“Top-line growth in our US business accelerated in the fourth quarter and we gained further share in our exterior and interior product categories across our established and emerging markets. Margins were slightly lower due to increased pulp costs, plant ramp ups and further investment in growth initiatives, including the recruitment of 267 additional staff, mainly in the second half.

“The outlook for housing in the US remains positive.

“Our Asia Pacific businesses in Australia, New Zealand and the Philippines continued to deliver improved performance and we are encouraged by prospects in these markets.

“We are also pleased with progress in Chile, Europe and our new roofing business in the USA,” Mr Macdonald said.

USA Fibre Cement – Strong Sales and Volume Growth

Net sales increased 27% to US$185.1 million in the 4^th quarter due to a 29% increase in sales volume to 383.6 million square feet. The main drivers were continued strong growth in demand for fibre cement and a healthy residential housing sector buoyed by low interest rates, strong house prices and a strengthening US economy.

There was strong sales growth in both our emerging and established geographic markets and in our exterior and interior product categories.

Average selling prices were 2% lower for the quarter, reflecting stronger sales growth for some of our lower priced products and a higher level of volume rebates.

Despite increased 4^th quarter costs, strong top line growth helped lift EBIT² 14% to US$43.2 million for the quarter. The EBIT margin² was 23.3% for the quarter.

For the full year, net sales were up 23% to US$738.5 million and EBIT² was 26% higher to US$195.6 million and the EBIT margin² was 26.5%.

During the quarter, we started construction of our new 300 million square feet green-field fibre cement plant in Reno, Nevada, which will service rapidly growing demand on the west coast of the US. We also continued the ramp-up of recently upgraded capacity at the Blandon, Pennsylvania and Waxahachie, Texas plants, as well as our new proprietary pre-finishing line at the Peru, Illinois plant which is used to paint our ColorPlus™ Collection of products.

Australia and New Zealand Fibre Cement

Net sales increased 34% to US$53.1 million for the quarter due mainly to favourable currency translation. New housing activity in Australia was softer compared to the same period a year ago, but housing renovations remained strong. In New Zealand, new housing activity remained buoyant.

EBIT² increased 30% for the full year and was up 5% in Australian dollars due to lower SG&A. The EBIT margin² for the year was 18.1%. EBIT² was up 97% for the quarter and 57% in Australian dollars on account of redundancy costs incurred in the same period last year. The EBIT margin² for the quarter increased to 14.5%.

Philippines – Positive EBIT²

The Philippines business recorded another small positive EBIT² in the quarter resulting in a full year EBIT² of US$2.2 million as it continued to generate increased sales and reduce manufacturing costs.

Chile – First Full Year Positive EBIT²

The business recorded another quarterly positive EBIT² and achieved its first full year positive EBIT² since commencing commercial production in 2001.

USA Hardie® Pipe – Strong Growth and Manufacturing Efficiencies

Further strong top line growth and manufacturing performance improvements were achieved, but prices remain low and manufacturing costs are still higher than our targets, resulting in the business incurring a loss for the quarter and full year.

Europe

Our expansion into Europe continues to track in line with our expectations following the business becoming operational in the first quarter. We are growing demand and sales as distribution outlets are added in the UK and France and as we build awareness among distributors, builders and contractors.

Special Commission of Inquiry

There is currently a Special Commission of Inquiry into the establishment of the Medical Research and Compensation Foundation in NSW, Australia. The company is co-operating with the Inquiry, which is expected to report by, or after, the end of June.

Outlook

In North America, housing construction continues to be buoyed by low interest rates and strong house prices and the short term outlook remains positive with indicators of future activity including housing starts, permits and builder confidence all at high levels.

Despite expectations of higher interest rates later in the year, the fundamental drivers of housing demand continue to look positive. The US domestic economy is strengthening and demographic factors such as immigration, internal migration and household formation all suggest healthy levels of housing demand over the medium to longer term.

Our North American business is expected to generate further top-line and market share growth as it continues to penetrate its exterior and interior product categories across its established and emerging markets.

In Australia and New Zealand, the renovations and commercial segments are expected to remain buoyant over the short term, but new housing activity in Australia is expected to further soften. Increased sales and improved plant operating efficiencies are expected.

In the Philippines, stronger domestic and export demand is expected from increased construction activity, reflecting more favourable economic conditions in the region. Increased demand and more cost savings should further improve operating performance.

In Chile, the business is entering its seasonal slow down period, but construction activity is expected to be stronger during this period than a year ago. Further market penetration and share growth is expected as awareness of the business’s expanded product range among builders, distributors and contractors continues to increase.

The USA Hardie® Pipe business is continuing to grow sales as it penetrates the south-east market and is lifting production to meet growing demand. Further progress is expected to improve plant operating efficiency and lower manufacturing costs.

In Europe, further market penetration is expected as the business continues to build awareness of its products among builders, contractors and distributors.

Overall, the strong results achieved in the past year are continuing into the first quarter and prospects for good growth over the full year are encouraging. The company intends to provide earnings guidance for the full year when it reports its 1^st quarter results in August.

Ends.

Media/Analysts call:

Greg Baxter
Executive Vice President
Telephone: 61 2 8274 5377
Mobile: 0419 461 368
Email: [email protected]

Or

Steve Ashe
Vice President Investor Relations
Telephone: 61 2 8274 5246
Mobile: 0408 164 011
Email: [email protected]

Facsimile: 61 2 8274 5218

The release and the accompanying MD&As and management presentation, along with the audio webcast of the presentation, are available from the Investor Relations section of the company website at www.jameshardie.com

Notes

1.		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 this package, including Management’s Discussion and Analysis (MD&A), a Management Presentation, a Financial Report and a Results at a Glance document.
2.		EBIT is defined as operating income. EBIT margin is defined as EBIT as a percentage of our net sales. We believe EBIT and EBIT margin to be relevant and useful information as these are the primary measures used by our management to measure the operating profit or loss of our business. EBIT is one of several metrics used by our management to measure the cash generated from our operations, excluding the operating cash requirement of our interest and income taxes. Additionally, EBIT is believed to be a primary measure and terminology used by our 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 we have defined them, may not be comparable to similarly titled measures reported by other companies.
		EBIT and EBIT margin, as used in this document, are equivalent to the US GAAP measures of operating income and operating income margin.
3.		Operating profit from continuing operations is equivalent to the US GAAP measure of income from continuing operations.
4.		Net operating profit including discontinued operations is equivalent to the US GAAP measure of net income.
5.		Gearing ratio is defined as net debt (external debt net of cash on hand) divided by the sum of net debt plus equity.

Disclaimer

This media release contains forward-looking statements. Words such as “believe,’’ “anticipate,’’ “plan,’’ “expect,’’ “intend,’’ “target,’’ “estimate,’’ “project, “ “predict, “ “forecast,’’ “guideline,’’ “should,’’ “aim’’ and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors, which are further discussed in our reports submitted to the Securities and Exchange Commission on Forms 20-F and 6-K and in our other filings, include but are not limited to: competition and product pricing in the markets in which we operate; general economic and market conditions; compliance with, and possible changes in, environmental and health and safety laws; dependence on cyclical construction markets; the supply and cost of raw materials; our reliance on a small number of product distributors; the consequences of product failures or defects; exposure to environmental, asbestos or other legal proceedings; and risks of conducting business internationally. We caution you that the foregoing list of factors is not exclusive and that other risks and uncertainties may cause actual results to differ materially from those contained in forward-looking statements. Forward-looking statements speak only as of the date they are made.

4^th Quarter and Full Year – 31 March 2004

All comparisons are against the 4th quarter or 12 months of the previous fiscal year. All dollar amounts are in US$ millions. Results are for continuing businesses only unless otherwise stated. Note: This document should be read in conjunction with other 4th quarter and Full Year results materials including a Media Release, a Management’s Discussion and Analysis, a Management Presentation and a Financial Report.

James Hardie Industries N.V.

Results for the 4th Quarter Ended 31 March 2004

Unless otherwise stated, results are for continuing operations only and comparisons are of the 4^th quarter of the current fiscal year
versus the 4th quarter of the prior fiscal year.

Total Net Sales

Total net sales increased 29% compared to the same quarter of the previous year, from US$194.3 million to US$251.3 million.

Net sales from USA Fibre Cement increased 27% from US$146.2 million to US$185.1 million due to continued strong growth in sales volumes.

Net sales from Asia Pacific Fibre Cement increased 33% from US$44.3 million to US$59.0 million due to increased sales volumes and favourable currency exchange rate differences.

Net sales from Other Fibre Cement increased 89% from US$3.8 million to US$7.2 million as the Chilean flat sheet business, the USA-based Hardie® Pipe business and European Fibre Cement business continued to grow.

USA Fibre Cement

Net sales increased 27% from US$146.2 million to US$185.1 million due to increased sales volumes, partly offset by a lower average net selling price.

Sales volume increased 29% from 297.9 million square feet to 383.6 million square feet, due to strong growth in primary demand for fibre cement and a favourable housing construction market. This increase is primarily because of increased penetration into the North American markets but also includes the benefit of increased housing starts in the third quarter of this fiscal year compared to the same period in the prior year.

New residential construction and repair and remodel activity remained at healthy levels buoyed by low interest rates, strong house prices and a strengthening domestic economy.

There was strong sales growth in both our emerging and established geographic markets and in our exterior and interior product markets.

We continued to increase our penetration of the exterior products market taking share from alternative materials, primarily wood-based and vinyl siding. There was good growth in sales of higher-priced, differentiated products such as vented soffits, Heritage® panels, the ColorPlus™ Collection of pre-painted siding and Harditrim® XLD™ planks.

In the interior products market, sales of our Hardibacker 500® half-inch backerboard again grew strongly as it further penetrated its target market.

The average net selling price decreased 2% from US$491 per thousand square feet to US$483 per thousand square feet. The decrease was primarily due to strong growth in products priced below the average selling price, such as Hardibacker® backerboard and primed Hardiplank® siding, and a higher level of volume rebates. Growth in sales of differentiated, higher-priced products such as the ColorPlus™ Collection and Harditrim® is expected to increase average net selling prices over the medium to longer-term.

During the quarter, we commenced construction of our new 300 million square feet green-field fibre cement plant at Reno, Nevada. The plant will service the rapidly growing demand in the west-coast region of the United States, and is expected to be completed by the end of 2004.

Also during the quarter, we continued the ramp-up of the recently upgraded Blandon, Pennsylvania plant acquired from Cemplank in December 2001, the 160 million square feet panel production line at our Waxahachie, Texas plant, as well as the new proprietary pre-finishing line at our Peru, Illinois plant.

Asia Pacific Fibre Cement

Net sales for this segment increased 33% from US$44.3 million to US$59.0 million. Net sales increased 2% in Australian dollars. Sales volume increased 10% from 92.0 million square feet to 101.1 million square feet.

Australia and New Zealand Fibre Cement

Net sales increased 34% from US$39.5 million to US$53.1 million due mainly to favourable currency exchange rate differences. In Australian dollars, net sales increased 4% due to a small increase in sales volumes and the year-end true-up of volume rebates.

Sales volumes increased 1% from 72.6 million square feet to 73.4 million square feet due to growth in sales of Australia and New Zealand building boards and FRC Pipes, partly offset by a decline in export sales.

In Australia, new residential housing activity was softer for the quarter but the renovation and commercial segments remained strong.

In New Zealand, new residential housing activity continued to be healthy and there was strong demand for weatherboards, including our Linea® range.

The average net selling price increased 3% primarily due to the year-end true-up of volume rebates.

Philippines Fibre Cement

Net sales increased 23% from US$4.8 million to US$5.9 million. In local currency, net sales increased 29% due to a 43% increase in sales volume compared to the same quarter of the previous year, from 19.5 million square feet to 27.8 million square feet, partly offset by a lower average net selling price.

Improved market penetration in the Philippines and further development of export markets helped strengthen demand during the quarter.

The average selling price in local currency decreased 9% compared to the same quarter of the previous year due mainly to a change in sales mix between domestic and export sales.

Other Fibre Cement

Chile Fibre Cement

Net sales increased 74% compared to the same period last year as our Chilean business continued to penetrate the domestic flat sheet market. In local currency, net sales increased 44%.

Sales volume increased 62% compared to the same quarter last year due to a significant increase in domestic and export demand. In local currency, the average selling price decreased 11% primarily due to a change in sales mix between domestic and export sales.

Construction activity in Chile and neighbouring Latin American countries showed further signs of improvement during the quarter.

Hardie® Pipe

Our USA Hardie® Pipe business continued to penetrate the south-east market of the United States, improve its manufacturing efficiency and make progress on regulatory approvals in key markets.

Net sales increased 70% compared to the same period last year due to a 70% increase in sales volume. The product mix was broadened slightly during the quarter but the businesses main focus continued to be the 12” to 36” diameter range of drainage pipes.

Further progress was achieved during the quarter in improving manufacturing performance of the plant, but operating costs are still above our targets.

The average net selling price was flat compared to the same period last year and remains well below the national average net selling price. The lower prices reflect the competitive response to our entry into the south-east market.

Europe

Since commencing operations in the first quarter of this fiscal year our European business has continued to build awareness of our products among distributors, builders and contractors and grow demand for fibre cement.

Sales volume grew significantly during the quarter, albeit off a low base, as we added more distribution outlets in both the U.K. and French markets.

Market response to our interior and exterior range of products continues to be favourable.

Artisan Roofing

In June 2003, we began trialling and commissioning our pilot roofing plant at Fontana, California. The pilot plant, which has a design capacity of 25 mmsf, was built to test our proprietary manufacturing technology and to provide product for market testing in Southern California.

Production trials and commissioning work continued during the quarter and we expect further sales of our Artisan® roofing product to be made in the first quarter of fiscal year 2005.

Gross Profit

Gross profit increased 16% from US$77.1 million to US$89.7 million due to improvements in all our major businesses. The gross profit margin decreased 4.0 percentage points to 35.7%.

USA Fibre Cement gross profit increased 13% due to higher net sales, partly offset by an increase in unit cost of sales and increased freight costs. The higher unit cost of sales resulted primarily from increased sales of higher-priced, differentiated products, higher pulp costs and the ramp-up of the new manufacturing lines at the Blandon, Pennsylvania; Waxahachie, Texas; and Peru, Illinois plants. The gross profit margin decreased 4.7 percentage points.

Asia Pacific Fibre Cement gross profit increased 31% following significant improvements from Australia and New Zealand Fibre Cement and Philippines Fibre Cement. The improved result for Australia and New Zealand was due to manufacturing efficiency improvements in New Zealand and a favourable foreign exchange difference. In the Philippines, increased sales and reduced manufacturing costs resulted in the stronger gross profit performance. The Asia Pacific Fibre Cement gross profit margin decreased 0.5 of a percentage point.

Selling, General and Administrative (SG&A) Expenses

SG&A expenses increased 6% compared to the same quarter last year, from US$43.7 million to US$46.3 million. The increase in SG&A expenses was due mainly to sales and marketing expenses associated with growth initiatives in the USA, partly offset by significant reductions in SG&A in Asia Pacific Fibre Cement. However, as a percentage of sales, SG&A expenses were 4.1 percentage points lower, at 18.4%.

Research and Development Expenses

Research and development includes costs associated with “core” research projects that are aimed at benefiting all fibre cement business units. These costs are recorded in the Research and Development segment rather than being attributed to individual business units. These costs increased 17% for the quarter to US$4.2 million.

Other research and development costs associated with commercialisation projects in business units are included in the business related unit segment results. In total, these costs were 21% higher at US$2.3 million.

Other Operating Expenses

Other operating expenses of US$2.1 million for the quarter mainly reflect an increase in cost provisions for our Australia and New Zealand business.

EBIT²

EBIT increased 25% from US$27.9 million to US$34.8 million. The EBIT margin decreased 0.6 of a percentage point to 13.8%.

USA Fibre Cement EBIT increased 14% from US$37.8 million to US$43.2 million. The increase was due to strong growth in net sales, partly offset by an increase in unit cost of sales and SG&A expenses. The increase in costs for the quarter includes the impact of an additional 267 employees since the same quarter last year and higher pulp prices. The EBIT margin decreased 2.6 percentage points to 23.3%.

Asia Pacific Fibre Cement EBIT increased 89% from US$4.4 million to US$8.3 million. The EBIT margin increased 4.2 percentage points to 14.1%.

Australia and New Zealand Fibre Cement EBIT increased 97% from US$3.9 million to US$7.7 million. In Australian dollars, EBIT increased 57%. The increase in EBIT in Australian dollars was due to increased net sales and lower SG&A costs compared to the same period last year. The EBIT margin increased 4.6 percentage points to 14.5%.

Our Philippines business recorded another small positive EBIT for the quarter due to increased net sales and manufacturing cost savings.

The Chile Fibre Cement business recorded a positive EBIT for the third consecutive quarter since achieving breakeven in the first quarter of this fiscal year.

Our USA Hardie® Pipe business incurred an operating loss for the quarter due to low average net selling prices and higher than targeted production costs.

Our European fibre cement business incurred an operating loss for the quarter, following its commencement earlier this fiscal year.

General corporate costs decreased by US$0.7 million from US$7.7 million to US$7.0 million. This decrease was due to a US$1.6 million gain resulting from the positive resolution of a vendor dispute and a decrease in employee bonus plan expense, partly offset by changes in a number of other corporate costs.

Net Interest Expense

Net interest expense increased by US$0.4 million from US$2.1 million to US$2.5 million. Interest expense increased by US$0.4 million primarily due to lower capitalisation of interest of $0.3 million.

Other Income, net

The net gain in other income of US$6.9 million is largely accounted for by a US$4.5 million profit achieved on the sale of New Zealand property.

Income Tax Expense

Income tax expense increased by US$4.6 million from US$3.3 million to US$7.9 million due to the increase in profit.

Operating Profit from Continuing Operations⁴

Income from continuing operations increased by 35% or US$8.2 million, from US$23.1 million to US$31.3 million due to stronger performance from our major businesses.

Discontinued Operations

We recorded income from discontinued operations of US$0.7 million in the current period compared to US$31.4 million during the same period in the prior year. Income from discontinued operations in the current period includes favourable outcomes on matters related to our former Gypsum business, net of expenses of other discontinued businesses. Included in Discontinued Operations in the prior period is a US$30.0 million profit for the sale of the Las Vegas Gypsum land.

End.

Media/Analysts call:

Greg Baxter
Executive Vice President
Telephone: 61 2 8274 5377
Mobile: 0419 461 368
Email: [email protected]

Or

Steve Ashe
Vice President Investor Relations
Telephone: 61 2 8274 5246
Mobile: 0408 164 011
Email: [email protected]

Facsimile: 61 2 8274 5218

The MD&As and accompanying release and management presentation, along with an audio webcast of the presentation are available at www.jameshardie.com

Notes

1. This Management’s Discussion and Analysis document forms part of a package of information about the company’s results. It should be read in conjunction with the other parts of this package, including a Media Release, a Management Presentation, a Financial Report and a Results at a Glance document.

2. EBIT is defined as operating income. EBIT margin is defined as EBIT as a percentage of our net sales. We believe EBIT and EBIT margin to be relevant and useful information as these are the primary measures used by our management to measure the operating profit or loss of our business. EBIT is one of several metrics used by our management to measure the cash generated from our operations, excluding the operating cash requirement of our interest and income taxes. Additionally, EBIT is believed to be a primary measure and terminology used by our 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 we have defined them, may not be comparable to similarly titled measures reported by other companies.

EBIT and EBIT margin, as used in this document, are equivalent to the US GAAP measures of operating income and operating income margin.

3. Operating profit from continuing operations before income taxes is equivalent to the US GAAP measure of income from continuing operations before income taxes.

4. Operating profit from continuing operations is equivalent to the US GAAP measure of income from continuing operations.

5. Net operating profit including discontinued operations is equivalent to the US GAAP measure of net income.

Disclaimer

This document contains forward-looking statements. Words such as “believe,’’ “anticipate,’’ “plan,’’ “expect,’’ “intend,’’ “target,’’ “estimate,’’ “project,’’ “predict,’’ “forecast,’’ “guideline,’’ “should,’’ “aim’’ and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors, which are further discussed in our reports submitted to the Securities and Exchange Commission on Forms 20-F and 6-K and in our other filings, include but are not limited to: competition and product pricing in the markets in which we operate; general economic and market conditions; compliance with, and possible changes in, environmental and health and safety laws; dependence on cyclical construction markets; the supply and cost of raw materials; our reliance on a small number of product distributors; the consequences of product failures or defects; exposure to environmental, asbestos or other legal proceedings; and risks of conducting business internationally. We caution you that the foregoing list of factors is not exclusive and that other risks and uncertainties may cause actual results to differ materially from those contained in forward-looking statements. Forward-looking statements speak only as of the date they are made.

James Hardie Industries N.V.

Results for the Full Year Ended 31 March 2004

Unless otherwise stated, results are for continuing operations only and comparisons are of the
current fiscal year versus the prior fiscal year.

Total Net Sales

Total net sales increased 25% compared to the previous year, from US$783.6 million to US$981.9 million.

Net sales from USA Fibre Cement increased 23% from US$599.7 million to US$738.6 million due to continued strong growth in sales volumes and higher average net selling prices.

Net sales from Asia Pacific Fibre Cement increased 26% from US$174.3 million to US$219.8 million due to increased sales volumes and favourable currency exchange rate differences.

Net sales from Other Fibre Cement increased 145% from US$9.6 million to US$23.5 million as the Chilean flat sheet business, the USA-based Hardie® Pipe business and the European Fibre Cement business continued to grow strongly.

USA Fibre Cement

Net sales increased 23% from US$599.7 million to US$738.6 million.

Sales volume increased 19% from 1,273.6 million square feet to 1,519.9 million square feet due to strong growth in primary demand for fibre cement and a favourable housing construction market.

Residential housing activity remained healthy during the year buoyed by low mortgage rates, strong house prices, low inventory levels of new homes for sale and a recovering domestic economy.

Strong growth continued in both the interior and exterior product markets and in our emerging and established markets as our products continued to take share from alternative materials, mainly wood-based and vinyl siding.

The average net selling price increased 3% compared to the previous year from US$471 per thousand square feet to US$486 per thousand square feet. This was due to an increased proportion of sales of higher-priced, differentiated products and a price increase in some regions implemented in the first quarter of this fiscal year.

In the exterior products market, there was continued strong growth in sales of higher-priced, differentiated products such as vented soffits, Heritage® panels, the ColorPlus™ Collection of pre-painted siding and Harditrim® XLD™ planks.

In the interior products market, sales of our Hardibacker 500™ half-inch backerboard grew strongly as it further penetrated its target market, helping to lift our share of the interior cement board market.

During the fourth quarter, we commenced construction of our new 300 million square feet green-field fibre cement plant at Reno, Nevada. The plant will service the rapidly growing demand in the west-coast region of the United States, and construction is expected to be completed by the end of 2004.

During the year, we completed the upgrade and began ramping-up our Blandon, Pennsylvania plant acquired from Cemplank in December 2001. The upgrade increased design capacity of

the plant from 120 mmsf to 200 mmsf. We also completed the upgrade and began ramping-up our 160 mmsf panel production line at our Waxahachie, Texas plant.

Also during the year, we commissioned and commenced ramping-up our new proprietary pre-finishing line at our Peru, Illinois plant. This is expected to significantly reduce painting costs for our ColorPlus™ Collection of exterior siding, and help accelerate our market penetration in the northern region. Also at our Peru, Illinois plant, we commenced construction of the new 160 million square feet trim line, which is expected to be completed in mid 2004.

Asia Pacific Fibre Cement

Net sales for this segment increased 26% from US$174.3 million to US$219.8 million. Net sales increased 3% in Australian dollars. Sales volume increased 9% from 368.3 million square feet to 402.1 million square feet.

Australia and New Zealand Fibre Cement

Net sales increased 25% from US$156.3 million to US$195.5 million, primarily due to favourable foreign exchange rate differences. In Australian dollars, net sales increased 1%.

The increase in net sales in local currency was due to a 1% increase in sales volume from 298.7 million square feet to 303.0 million square feet. The average net selling price was flat compared to the previous year.

In Australia, new residential housing activity slowed during the year, but was better than industry forecasts. The impact of this was partly offset by strong residential renovation and commercial activity.

FRC Pipes continued to penetrate its targeted market and increased sales volumes compared to the prior year. During the year, FRC Pipes was successful in tendering to supply storm drainage pipes for the Sydney Orbital road project. The project involves the supply of a significant volume of FRC pipes over the next year.

A new pipe standard was released by Standards Australia during the year. This will enable our fibre cement pipes to compete more effectively against steel reinforced concrete pipes.

During the year, we launched ExoTec™ Facade Panel, our new premium facade panel incorporating the next generation of fibre cement composites. The new product is designed for commercial applications.

In New Zealand, new residential housing activity remained at healthy levels and demand was strong for soffits and weatherboards, including our Linea® range of weatherboards, which uses proprietary low-density technology.

Philippines Fibre Cement

Net sales increased 34% from US$18.0 million to US$24.2 million. In local currency, net sales increased 41%. This was due to a 42% increase in sales volume compared to the prior year, from 69.7 million square feet to 99.1 million square feet, partly offset by a lower average net selling price.

The average selling price decreased 1% compared to the prior year due to a less favourable product mix between domestic and export sales.

Other Fibre Cement

Chile Fibre Cement

Our Chilean operation continued to increase its penetration of the local market in line with its targets.

Net sales increased 167% compared to the prior year due to a 103% increase in sales volume and a higher average selling price.

The level of construction activity in Chile improved during the period after being stagnant since the end of 2001.

The average selling price increased due to strong export sales and growth in sales of higher-priced, differentiated products.

Hardie® Pipe

Our USA Hardie® Pipe business continued to penetrate the south-east market of the United States and improve its manufacturing efficiency.

Net sales increased 95% compared to the prior year due to a 95% increase in sales volume. The average net selling price was flat compared to the previous year.

Market acceptance of our fibre cement pipes continued to grow strongly and we further increased our share of the market for our targeted diameter range of drainage pipes in Florida.

The manufacturing performance of the plant continued to improve during the period, reducing costs and increasing output, particularly of the larger diameter pipes. Despite this, manufacturing costs remain higher than our targets.

The competitive response to our entry into the south-east market remains intense.

Europe

Our European fibre cement business commenced operations during the year with the launch in the U.K. and France markets of our Hardibacker® range of interior products and our proprietary pre-painted siding products.

Awareness of our product range among distributors, builders and contractors is growing and sales of Hardibacker® and our pre-painted siding products are in line with our expectations.

In June 2003, we commissioned a new coating line near Southampton in England. The line is used to apply the finishing coat to siding products imported from our United States business.

Artisan Roofing

In June 2003, we commissioned our pilot roofing plant at Fontana, California. The pilot plant, which has a design capacity of 25 mmsf, was built to test our proprietary manufacturing technology and to provide product for market testing in Southern California.

Plant testing and manufacturing trials commenced during the year and the first on-site installations of the new roofing product were completed. The first commercial sales of our Artisan® roofing product were made in the second half of the current year and further sales are expected in the first quarter of fiscal year 2005. Interest in our roofing product within our targeted market is strong.

Gross Profit

Gross profit increased 23% from US$290.8 million to US$358.9 million due to improvements in all our major businesses. The gross profit margin decreased 0.5 of a percentage point to 36.6%.

USA Fibre Cement gross profit increased 24% due to higher sales volumes and a higher average net selling price, partly offset by an increase in unit cost of sales and higher freight costs. The higher unit cost of sales resulted primarily from higher pulp costs, increased sales of higher-priced differentiated products and the ramp-up of the new manufacturing lines at the Blandon, Pennsylvania; Waxahachie, Texas; and Peru, Illinois plants. The gross profit margin increased 0.2 of a percentage point.

Asia Pacific Fibre Cement gross profit increased 19% following improvements from Australia and New Zealand Fibre Cement, and Philippines Fibre Cement, which increased 16% and 70%, respectively. The improved result for Australia and New Zealand was due to a favourable foreign exchange difference. In the Philippines, increased sales and reduced manufacturing costs resulted in the stronger gross profit performance. The Asia Pacific Fibre Cement gross profit margin decreased 2.1 percentage points.

Selling, General and Administrative (SG&A) Expenses

SG&A expenses increased 12% compared to the prior year, from US$144.9 million to US$162.0 million. The increase in SG&A expenses was due mainly to sales and marketing expenses associated with growth initiatives in the USA. However, as a percentage of sales, SG&A expenses were 2.0 percentage points lower, at 16.5%.

Research and Development Expenses

Research and development includes costs associated with “core” research projects that are aimed at benefiting all fibre cement business units. These costs are recorded in the Research and Development segment rather than being attributed to individual business units. These costs increased 36% for the period to US$14.1 million.

Other research and development costs associated with commercialisation projects in business units are included in the business unit segment results. In total, these costs increased 10% to US$8.5 million.

Other Operating (Expenses) / Income

Other operating expenses of US$2.1 million in the current fiscal year mainly reflect an increase in cost provisions for our Australia and New Zealand business. In the prior year, we realised a US$1.0 million gain from the settlement of a pulp hedge contract.

EBIT²

EBIT increased 34% from US$128.8 million to US$172.2 million. The EBIT margin increased 1.1 percentage points to 17.5%.

USA Fibre Cement EBIT increased 26% from US$155.1 million to US$195.6 million. The increase was due to strong growth in net sales, partly offset by an increase in unit cost of sales, freight and SG&A expenses. The EBIT margin increased 0.6 percentage points to 26.5%.

Asia Pacific Fibre Cement EBIT increased 38% from US$27.3 million to US$37.6 million. The EBIT margin increased 1.4 of a percentage point to 17.1%.

Australia and New Zealand Fibre Cement EBIT increased 30% from US$27.2 million to US$35.4 million primarily due to favourable foreign exchange rate differences. In Australian dollars, EBIT increased 5% mainly due to lower SG&A expenses, partly offset by a temporary decrease in manufacturing performance at the Rosehill, NSW plant during the year and increased freight costs. The EBIT margin was 0.7 of a percentage point higher, at 18.1%.

Our Philippines business recorded a US$2.2 million EBIT for the year compared to a US$0.1 million EBIT for the prior year.

The Chile Fibre Cement business recorded its first full year positive EBIT since commencing commercial production in 2001.

Despite continued strong volume growth and improved manufacturing performance, our USA Hardie® Pipe business incurred an operating loss for the year due to low prices and higher than targeted unit costs.

Our European fibre cement business became operational during the year and incurred an operating loss, as expected.

General corporate costs decreased by US$2.4 million from US$29.9 million to US$27.5 million. This decrease was primarily due to a reduction in employee bonus plan expense and a US$1.6 gain from the positive resolution of a vendor dispute, partly offset by changes in a number of other corporate expenses.

Net Interest Expense

Net interest expense decreased by US$9.9 million from US$19.9 million to US$10.0 million. In the prior year, we incurred a US$9.9 million make-whole payment from the early retirement of US$60 million of long-term debt. Interest expense decreased further by US$2.7 million due to lower average borrowings. These decreases in net interest expense were partially offset by a US$2.7 million decrease in interest income due to lower average cash balances compared to the previous year.

Other Income, net

The net gain in other income of US$3.5 million was achieved after accounting for income items including a US$4.5 million profit on sale of New Zealand property. These income items were partly offset by expense items including US$3.2 million primarily due to a capital duty fee paid in conjunction with our Dutch legal structure. We incurred this to extend the scope of our international finance subsidiary to lend to global operations.

Income Tax Expense

Income tax expense increased by US$14.3 million from US$26.1 million to US$40.4 million due to the increase in profit.

Operating Profit from Continuing Operations⁴

Income from continuing operations increased by 50% or US$41.8 million, from US$83.5 million for the prior year to US$125.3 million this year.

Discontinued Operations

We recorded income from discontinued operations of US$4.3 million in 2004 compared to US$87.0 million in the prior year. The current year amount primarily includes a favourable outcome from matters related to our former Gypsum business and a gain on the sale of our New Zealand Building Systems business, net of other wind-up costs of Gypsum and other discontinued businesses. The previous fiscal year primarily consisted of net profit related to the sale of our Gypsum operations and Las Vegas land related to our Gypsum operations.

Liquidity and Capital Resources

We have historically met our working capital needs and capital expenditure requirements through a combination of cash flow from operations, proceeds from the divestiture of businesses, credit facilities and other borrowings, proceeds from the sale of property, plant and equipment and proceeds from the redemption of investments. Seasonal fluctuations in working capital generally have not had a significant impact on our short-term or long-term liquidity. We believe that we can meet our present working capital requirements for at least the next 12 months based on our current capital resources.

We had cash and cash equivalents of US$72.3 million as of 31 March 2004. At that date we also had credit facilities totalling US$446.0 million of which US$175.8 million was outstanding. Our credit facilities are all uncollateralised and consist of the following:

Cash Flow

Net operating cash inflows increased by US$97.8 million to US$162.6 million during the fiscal year compared to the prior fiscal year. Net income, after adjusting for the gain on disposal of subsidiaries and businesses and for a gain on sale of land and buildings, increased by US$35.6 million. Adjusting further for non-cash items included in net income, cash flows from operations increased additionally by US$36.7 million. Other working capital changes caused a net increase in cash of US$25.5 million.

Net investing activities produced a cash outflow of US$58.0 million during the year compared to a cash inflow of US$237.9 million for the prior year. The decrease was primarily due to proceeds from the sale of our Gypsum business and from the Las Vegas land sale, which was partially offset by a US$57.1 million payment related to the transfer of control of ABN 60 in fiscal 2003 that did not recur in fiscal 2004. In addition, we spent US$15.4 million less on capital expenditure during the year compared to the previous year.

The US$5.0 million from the sale of businesses resulted from the sale of our New Zealand Building Systems business in May 2003. The US$10.9 million from property sold resulted primarily from land and buildings of our Australia/New Zealand segment that we sold for cash in March 2004. The US$74.8 million capital expenditures in the current period resulted primarily from continued operating plant expansions and construction and new property purchases.

Net financing activities resulted in an outflow of US$87.9 million for the year compared to a US$279.4 million outflow in the prior year. The current year outflow resulted primarily from the return of capital of US$68.7 million and the dividends paid of US$22.9 million. In the prior year, the return of capital was higher by US$26.1 million. Additionally, in the prior year, we repaid US$160 million of bank debt, which did not recur in the current year. Net proceeds from borrowings decreased by US$5.0 million to US$0.5 million. The proceeds of US$3.2 million represent stock option exercises during the year.

End.

Media/Analysts call:

Greg Baxter
Executive Vice President
Telephone: 61 2 8274 5377
Mobile: 0419 461 368
Email: [email protected]

Or

Steve Ashe
Vice President Investor Relations
Telephone: 61 2 8274 5246
Mobile: 0408 164 011
Email: [email protected]

Facsimile: 61 2 8274 5218

The MD&As and accompanying release and management presentation, along with an audio webcast of the presentation, are available at the Investor Relations area of www.jameshardie.com

Notes

1. This Management’s Discussion and Analysis document forms part of a package of information about the company’s results. It should be read in conjunction with the other parts of this package, including a Media Release, a Management Presentation, a Financial Report and a Results at a Glance document.

2. EBIT is defined as operating income. EBIT margin is defined as EBIT as a percentage of our net sales. We believe EBIT and EBIT margin to be relevant and useful information as these are the primary measures used by our management to measure the operating profit or loss of our business. EBIT is one of several metrics used by our management to measure the cash generated from our operations, excluding the operating cash requirement of our interest and income taxes. Additionally, EBIT is believed to be a primary measure and terminology used by our 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 we have defined them, may not be comparable to similarly titled measures reported by other companies.

EBIT and EBIT margin, as used in this document, are equivalent to the US GAAP measures of operating income and operating income margin.

3. Operating profit from continuing operations before income taxes is equivalent to the US GAAP measure of income from continuing operations before income taxes.

4. Operating profit from continuing operations is equivalent to the US GAAP measure of income from continuing operations.

5. Net operating profit including discontinued operations is equivalent to the US GAAP measure of net income.

Disclaimer

This document contains forward-looking statements. Words such as “believe,’’ “anticipate,’’ “plan,’’ “expect,’’ “intend,’’ “target,’’ “estimate,’’ “project,’’ “predict,’’ “forecast,’’ “guideline,’’ “should,’’ “aim’’ and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors, which are further discussed in our reports submitted to the Securities and Exchange Commission on Forms 20-F and 6-K and in our other filings, include but are not limited to: competition and product pricing in the markets in which we operate; general economic and market conditions; compliance with, and possible changes in, environmental and health and safety laws; dependence on cyclical construction markets; the supply and cost of raw materials; our reliance on a small number of product distributors; the consequences of product failures or defects; exposure to environmental, asbestos or other legal proceedings; and risks of conducting business internationally. We caution you that the foregoing list of factors is not exclusive and that other risks and uncertainties may cause actual results to differ materially from those contained in forward-looking statements. Forward-looking statements speak only as of the date they are made.

James Hardie Industries N.V.

and

Subsidiaries

Financial Report

31 March 2004

JAMES HARDIE INDUSTRIES NV AND SUBSIDIARIES

INDEX TO FINANCIAL STATEMENTS

F-1

JAMES HARDIE INDUSTRIES N.V. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

The accompanying notes are an integral part of these consolidated financial statements.

F-2

JAMES HARDIE INDUSTRIES N.V. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME

The accompanying notes are an integral part of these consolidated financial statements.

F-3

JAMES HARDIE INDUSTRIES N.V. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

The accompanying notes are an integral part of these consolidated financial statements.

F-4

JAMES HARDIE INDUSTRIES N.V. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS