As part of a new capital management initiative, James Hardie Industries (ASX:JHX) has announced plans to buy back up to 5 per cent of its shares via an on-market share buyback in the next twelve months.
The building materials manufacturer says is also plans to distribute between 20 and 30 per cent of its profits after tax in ordinary dividends.
The company expects to resume paying dividends following its second quarter results in November, in addition to a full year dividend following its results in May 2012.
James Hardie says the opportunity has arisen because of the company's ability to generate strong cash flows and thereby reduce debt levels despite the continuing challenging operating environment, particularly in the US.
James Hardie booked an interim net loss of $329.8 million in the six months to 30 September 2010.
