James Hardie has more than doubled its annual profit and is upbeat about future sales as conditions improve in the US and Australian housing markets.
The building products group impressed investors with its annual net profit of $US99.5 million on Thursday, unveiling it along with a special dividend and share buyback plan.
Shares in the company rose by four per cent in morning trade and were still 50.5 cents higher at $14.19 at 1400.
Growth in home construction in Australia and the US was behind the group's soaring profit for the year to March 31.
Stronger housing markets in those countries, both key markets for James Hardie, resulted in increased sales volumes and prices for the group.
Despite the strong profit result, James Hardie didn't provide any future earnings guidance.
But chief executive Louis Gries said forecasts for the US housing market, where the company makes most of its profits, were encouraging.
He also expects sales in Australia to increase in line with growth in the housing construction market.
"We are very comfortable with where the US market is at; we like that it's increasing year to year and we like that it's not spiking," he said.
"The Australian market is a bit unclear right now but it's still going to be a good market even if it tapers off a bit."
James Hardie's better-than-expected earnings result and its positive comments about the Australian and US housing sectors helped boost investor confidence, Commsec market analyst Juliette Saly said.
"There's been a significant pick up in construction in the US which has been really supporting James Hardie over the past 12 months," she said.
"It has more than doubled its profit which is at the upper end of the company's own guidance. This has really impressed the market."
She said the company's special dividend to shareholders also surpassed market expectations.
The company declared a 32 US cents full year dividend, plus a special 20 US cent dividend, taking its payout to shareholders to 52 US cents, up from 37 US cents a year ago.
It is also planning to buy back up to five per cent of its shares in the next 12 months, after already buying back $34 million worth of stock in the past year.
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