Industrial giant James Hardie Industries plc [ASX:JHX] has seen its stock price jump 5.55% at time of writing after releasing its third quarter results for the period ending 31 December 2017.
The international building product manufacturer posted a significant 7% increase of net sales from the prior corresponding nine-month period.
This rise in sales translated to a group net operating profit of US$205.5 million for the nine months, an increase of 6%.
The group operates out of Dublin, is listed on both the ASX and NYSE, and boasts annual revenues of around AU$1.5 billion.
Return to strength
This news comes as a positive sign that James Hardie Industries has returned to strength after a disappointing year leading into their third quarter.
Their stock price has skyrocketed around 32% since October, leading to a 12.7% increase year-to-date.
CEO Louis Gries attributes the drive in growth to higher net product prices and modest sales volume growth.
Gries also noted the exterior volume was below expectations, but remained optimistic of continued quarterly growth, which was in line with the market index in the current quarter.
The company’s fibre cement business expanded net sales by an impressive 15% for the quarter due to strong Asia Pacific growth. Yet it’s expected that North American sales will grow steadily in 2018 due to a rise in the US housing market.
Full-year earnings guidance estimates for profits lie between US$267 million and US$275 million, with a FY2018 first-half dividend of 10 US cents to be paid per share on 23 February.
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