James Hardie shares have slumped after the building products supplier warned its full-year earnings were likely to fall short of analyst expectations.
Profit grew 58 per cent to $US90.6 million for the three months to June 30 on the back of strong demand from US homebuyers and a first contribution from the acquisition of building materials company Fermacell.
Sales of the company's fibre cement products in North America - a key market - grew by 10 per cent in the quarter.
James Hardie said earnings from the segment are expected to be at the top end of its 20 to 25 per cent growth range in the 2018/19 financial year.
But the company warned 2018/19 financial year profit will be between $US300 million and $340 million rather than the $US313 million to $358 million range expected by analysts.
"Management cautions that although US housing activity has been improving, market conditions remain somewhat uncertain and some input costs remain volatile," the company said in a statement.
Sales in the Australia, where James Hardie is exposed to the renovation and housing construction markets, are expected to trend above the market average for the eastern states, the company said.
James Hardie shares were down $1.76, or 7.6 per cent, to $21.46 at 1544 AEST.
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