Wall cladding and plasterboard maker James Hardie is in the preliminary stages of an acquisition in the United States, consistent with recent results’ disclosure about tripling earnings in the region via mergers and acquisitions, investor sources told this column,
It comes after James Hardie’s $US178 million net profit for the first quarter outstripped its own guidance and sell-side analyst estimates. However, its North American fibre cement business – 73.5 per cent of the group’s net sales – is expected to drag down next quarter’s results, thanks to a slowdown in volumes amid high interest rates and rising construction costs after a COVID-19 renovation boom.
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Sarah Thompson has co-edited Street Talk since 2009, specialising in private equity, investment banking, M&A and equity capital markets stories. Prior to that, she spent 10 years in London as a markets and M&A reporter at Bloomberg and Dow Jones. Email Sarah at sarah.thompson@afr.com
Emma Rapaport is a co-editor of the Street Talk column. Prior to that, she was a markets reporter at The Australian Financial Review. Connect with Emma on Twitter. Email Emma at emma.rapaport@afr.com
