James Hardie Industries PLC (ASX:JHX) is a global building materials company and the largest global manufacturer of fibre cement products. The company has a history of innovation and growth, and has recently achieved impressive results in the Australian stock market. In this article, we will explore the background, products, and performance of James Hardie Industries PLC.
The History of James Hardie Industries PLC
The predecessor of James Hardie Industries PLC was established in 1888, when James Hardie, a young Scotsman, immigrated to Melbourne, Australia, and started a business importing oils and animal hide tanning products. He was joined by another Scotsman, Andrew Reid, who became his partner in 1895. The company expanded into various industries, including asbestos cement products, which became its main business in the mid-20th century.
However, asbestos exposure caused serious health problems for many workers and customers, and the company faced numerous lawsuits and compensation claims. In the 1980s, James Hardie invented a new fibre cement material that was asbestos-free and had superior durability and performance. The company transitioned to this new product and gradually phased out asbestos from its operations.
In 2001, the company relocated its headquarters to the Netherlands, and in 2010, it moved to Ireland. The company also expanded its global presence, with operations in North America, Europe, Australia, New Zealand, and the Philippines. Today, James Hardie Industries PLC is the world’s leading producer and marketer of high-performance fibre cement and fibre gypsum building solutions.
The Products of James Hardie Industries PLC
James Hardie Industries PLC offers a wide range of building products for residential and commercial applications. The company’s products include:
– Siding and weatherboards: These are exterior cladding products that protect and beautify buildings. They come in various styles, colors, and textures, and are resistant to fire, moisture, insects, and weather damage.
– Facades: These are architectural panels that create distinctive and modern designs for buildings. They are lightweight, durable, and easy to install.
– Interior lining: These are wall and ceiling boards that provide acoustic and thermal insulation, fire protection, and aesthetic appeal. They are suitable for wet areas, such as bathrooms and kitchens, as well as dry areas, such as living rooms and bedrooms.
– Flooring: These are subflooring products that provide a strong and stable base for various types of flooring finishes. They are moisture-resistant, termite-resistant, and impact-resistant.
– Trim: These are decorative elements that add finishing touches to buildings. They include window sills, door frames, skirting boards, and cornices. They are durable, low-maintenance, and compatible with various siding products.
James Hardie Industries PLC is committed to innovation and quality in its products. The company invests heavily in research and development, testing facilities, and customer feedback. The company also adheres to strict environmental standards and social responsibility practices.
The Performance of James Hardie Industries PLC
James Hardie Industries PLC has been delivering strong financial results in recent years. The company has been growing its sales revenue, net income, earnings per share, and dividends consistently. The company has also been outperforming its competitors and the broader market.
For example, in the fiscal year 2022 (ended March 31), the company reported:
– Sales revenue of $3.6 billion USD (up 17% from the previous year)
– Net income of $546 million USD (up 64% from the previous year)
– Earnings per share of $1.22 USD (up 63% from the previous year)
– Dividends per share of $0.40 USD (up 33% from the previous year)
The company also achieved record levels of sales volume growth (15%), adjusted EBIT margin (25%), return on invested capital (32%), and free cash flow ($545 million USD).
As a result of its strong performance, the company’s share price has been rising steadily. In the past year (as of May 16), the company’s share price has increased by 8.27%, or 2.81 points AUD (Australian dollars), to trade at 36.80 AUD at the close of the session on the S&P/ASX 200 index.
The company’s share price has also outperformed its peers in the building materials industry (such as CSR Limited , Boral Limited , Fletcher Building Limited , etc.), as well as the S&P/ASX 200 index itself.
