(Reuters) -James Hardie Industries on Tuesday lowered its earnings forecast for fiscal 2023 for the second time, as the world’s largest fiber cement maker saw volumes across all three key regions tumbling amid uncertainties around a slowing housing market.
Demand in the housing market has tapered down owing to an aggressive policy tightening by global central banks to contain decades-high inflation, making it less affordable for consumers to take out mortgages.
The Dublin-based firm now expects full-year adjusted net income between $650 million and $710 million, down from $730 million to $780 million. That compares with a Refinitiv estimate of $730.1 million.
Sales of new U.S. single-family homes dropped in September and data for the prior month was revised lower, as the housing market in the country continues to stand out as the economic sector absorbing the hardest hit from the Federal Reserve’s aggressive interest rate hikes.
“We see a weakened housing market for the remainder of our fiscal year, softening volumes in all three regions we participate in,” James Hardie Chief Executive Aaron Erter said.
The building materials maker, however, said its adjusted net income for the quarter ending Sept. 30 came in at $175.8 million compared to $154.9 million last year. That, however, missed a Refinitiv Eikon estimate of $184.7 million.
James Hardie also announced a share buyback program for up to $200 million, commencing immediately through to Oct. 31 2023.
(Reporting by Roushni Nair and Jaskiran Singh in Bengaluru; Editing by Shailesh Kuber)
