James Hardie Industries (ASX:JHX) has reported its group net operating profit hit US$61.7 million for the first quarter of the 2018 financial year, that’s a 7 per cent drop compared to the prior corresponding period (pcp).
The industrial building materials saw the drop on the back of capacity constraints in the FY17, which dampened demand, even though capacity rose so far this financial (FY18) (in compared to the pcp and quarter).
James Hardie meantime saw its group adjusted EBIT fall 10 per cent on the prior corresponding period to US$88.3 million in the three months to 30 June 2017.
The company says even though manufacturing inefficiencies and production costs are higher than its historical and prior periods, they have begun to stabilise
Shares in James Hardie Industries (ASX:JHX) are trading 4 per cent lower to $18.24.