JHX James Hardie Industries plc

James Hardie Industries Se (JHX.AU) posted a full-year net loss Thursday as asbestos liabilities ballooned but said the U.S. housing market looks like it has finally bottomed out.

James Hardie, the largest maker of housing siding in the U.S., said its loss for the 12 months to March 31 was US$84.9 million, compared to a net profit of US$136.3 million in the previous year.

The result was marred by a US$224.2 million rise in the company's asbestos liabilities, arising from compensation payments to workers and customers suffering diseases caught from discontinued products.

On a positive note, quarterly sales volumes in U.S. business increased for the first time in four years compared to the previous corresponding period.

"I think we've probably reached the bottom of the housing downturn in the U.S. obviously it's a very low level," Chief Executive Louis Gries told investors on a conference call. "It looks like we've hit it now."

Net sales for the U.S. and Europe increased 4% in the final quarter to US$196.8 million, while over the full year the figure was down 11% at US$828.1 million.

But Gries said the rate and extent of the U.S. recovery remained uncertain and also warned costs for freight, energy, pulp and other raw materials were on the rise.

"This full year result is much better than we thought we would do in this type of market," he said.

Gries said James Hardie's Asia Pacific business, which includes Australia and New Zealand, enjoyed a "great" fourth quarter, with net sales up 49% to US$78.1 million. Over the year, sales in the division rose 9% to US$296.5 million.

The company's operating profit, which excludes asbestos liabilities and corporate costs, rose to US$133.0 million, compared with a revised US$100.5 million in the prior year.

The operating profit was above market expectations of U$127.7 million, according to a poll of four analysts conducted by Dow Jones Newswires. It was toward the top end of company guidance of US$111 million-US$135 million.

Gries said the Australian-listed company hoped to move its corporate domicile from The Netherlands to Ireland in the near future.

The company didn't pay a dividend, in line with its policy of conserving capital amid market and industry uncertainty implemented in November 2008.

It said full year sales fell to US$1.12 billion, from US$1.20 billion.

Gries didn't give earnings guidance for the current fiscal year.

At 0150 GMT, James Hardie shares were down 14 Australian cents, or 2%, at A$7.01, while the benchmark S&P/ASX 200 index was up 1.7 points at 4308.9.

-By Neil Sands, Dow Jones Newswires; 61-3-9292-2095; neil.sands@dowjones.com

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