Uncertainty about the recovery in the US housing market isn't expected to stop building products maker James Hardie from delivering a higher annual profit.
The group has reiterated its revised profit guidance, helped in part to good demand for its fibre cement products in the US and Europe.
The company expects to lift its full year adjusted net operating profit by up to 13 per cent to be between $US230 million and $US250 million ($A329.39 million-$A358.04 million).
In November, James Hardie downgraded its forecast by up to $US20 million, citing below-target growth in its share of an uncertain US housing market.
In its latest update to investors on Tuesday, the company said while the US housing market had been improving, conditions remain uncertain while some costs were volatile.
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However it expects margins for its US and Europe fibre cement business to be towards the higher end of, or possibly exceed, its targets.
IG market analyst Evan Lucas said he believed James Hardie could beat its profit forecast, based on the improvements in underlying earnings the company reported when it announced its first half results in November.
James Hardie's first half adjusted earnings before interest and tax rose 17 per cent for the half, with margins for its fibre cement business exceeding target in Europe and the US.
"It's just a little bit more positive, particularly in those core markets," Mr Lucas said.
"It suggests the company will beat its typically conservative guidance."
In slides accompanying the latest investor update, James Hardie said it was introducing unique products to "deliver a sustainable competitive advantage".
While the company already dominates fibre cement sales in North America, it hopes the product will become more popular in the housing market which is dominated by wood-looking and vinyl alternatives.
James Hardie argues that fibre cement, which can be used in external cladding, eaves, fire walls, and fencing, is more durable than wood and is more cost effective than brick.
Shares in James Hardie fell 11 cents to $15.72.
