Asbestos Deal Doesn’t Hinder Profit

Article Added February 28th, 2006 - Print This Story - Bookmark This Story

A compensation deal put together by product company James Hardie Industries will hopefully proceed, even after reporting a big jump in third quarter profits. Strong lift in profit is also expected this financial year.

The first nine months of 2005-06 showed a net profit of $195.5 million with its fiber-cement home-cladding products, which are continuing a popularity surge in the US. The companies third quarter profit more than doubled, pulling in $55 million even in the face of a fall in earnings from its Australian branch. The branch is involved in an industrial dispute in Brisbane and Sydney. Hardie has continued discussions with the Australian Taxation Office over the compensation deal that was signed with asbestos victims, unions and the NSW Government in December.

The deal was thought to be on hold when the ATO ruled that the compensation payouts could not be counted as a tax deduction. The payouts would be issued over the next forty years. The operating profit for Hardie is expected to fall between $270 million and $365 million, up more than $100 million from last year. Upper officials of the company figure that Hardie will not be affected too harshly by the slowing of the real estate boom in America. The company utilizes more traditional products life vinyl and wood siding in other emerging markets.

Article Added February 28th, 2006 - Print This Story - Bookmark This Story