Latest news with #AaronErter
Yahoo
5 hours ago
- Business
- Yahoo
James Hardie stock collapses nearly 35% as US housing slump hits building materials
James Hardie (JHX) stock tumbled nearly 35% on Wednesday as the maker of high-end home siding pointed to a weak US housing market and homeowners reluctant to spend on big projects. The stock, listed in the US and Australia, saw its biggest one-day drop since 1973, according to Bloomberg data. The company's profit declined 28% year over year during its fiscal first quarter. Net sales tumbled 9% over the same period. "Uncertainty is a common thread throughout conversations with customer and contractor partners," CEO Aaron Erter said during the company's earnings call. James Hardie pointed to "softer demand," citing a slowdown in single-family construction activity, especially in the southern part of the US. Read more about James Hardie's stock moves and today's market action. High interest rates have hit virtually every corner of the housing market, resulting in stagnant sales and home starts, and weakness in big projects requiring home equity lines of credit or other loans. "Homeowners are deferring large-ticket remodeling projects like re-siding, and affordability remains the key impediment to improvement in single-family new construction," Erter said. Home improvement retailers Lowe's (LOW) and Home Depot (HD) echoed a similar sentiment, though shares of both companies fared far better following their results this week. "Our customers still tell us that the rate environment is giving them pause on larger remodeling projects that would typically require debt financing," Home Depot CFO Richard McPhail told analysts during the company's earnings call on Tuesday. Lowe's said Wednesday it expects the overall home improvement market to remain flat for the full year. "We're still working through some short-term challenges, including elevated mortgage rates, cautious consumer affordability remains a pressure point that results in the lock-in effect that we've been seeing and also a depressed housing market," Lowe's CFO Brandon Sink said during the company's earnings call. Tariffs have been a central concern for retailers under President Trump's trade policy, but both home improvement retailers have struck an optimistic tone about managing higher costs. Home Depot noted that more than half of its products are sourced domestically and won't be affected by tariffs. Lowe's said about 60% of its goods are US-sourced, with 20% coming from China, representing a significant shift from seven years ago. Ines Ferre is a Senior Business Reporter for Yahoo Finance. Follow her on X at @ines_ferre. Se produjo un error al recuperar la información Inicia sesión para acceder a tu portafolio Se produjo un error al recuperar la información Se produjo un error al recuperar la información Se produjo un error al recuperar la información Se produjo un error al recuperar la información
Business Times
15 hours ago
- Business
- Business Times
US housing warning sparks worst James Hardie rout since 1973
[SYDNEY] A downbeat outlook on the US housing market from James Hardie Industries sent shares of the building materials producer tumbling the most in five decades, the latest sign of caution around a pillar of the world's largest economy. The company's stock tumbled 28 per cent in Australia, the most since November 1973, after its quarterly profit sank and it warned demand for repairs and new construction in North America remains challenging. Its US-listed shares plunged as much as 37 per cent. 'Uncertainty is a common thread throughout conversations with customer and contractor partners,' chief executive officer Aaron Erter said. Homeowners are deferring large-ticket remodelling projects, and affordability remains the key impediment to improvement in single-family new construction, he added. Difficult economic conditions continue to weigh on American homebuyers, with the real estate market recently recording its slowest spring selling season in more than a dozen years. US luxury builder Toll Brothers on Tuesday (Aug 19) also reported quarterly orders that missed analysts' estimates. The weak housing sector has attracted attention from US President Donald Trump, who's been pushing for the Federal Reserve to cut interest rates in part to make mortgages more affordable. 'This is a tough quarter to swallow,' William Blair & Co analyst Ryan Merkel wrote in a note. 'Big picture, North America volumes down 15 per cent in the quarter was much worse than we thought and brings into question share loss and business model cyclicality.' A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up The result set a 'conservative bar' as single-family new construction caused a big miss and guidance cut, he wrote. James Hardie's adjusted net operating profit dropped 29 per cent year on year to US$126.9 million for the three months ending June. Net sales in its North American fibre cement business decreased 12 per cent during the quarter as key markets such as Texas, Florida and Georgia grapple with cost barriers and elevated housing inventory. The firm gets about 70 per cent of its revenue from North America, according to data compiled by Bloomberg. James Hardie's stock has also been pressured by the company's US$8.75 billion acquisition of home-decking provider AZEK in March. The deal amounted to a major bet on the durability of the US housing market and consumer spending. Meanwhile, home-improvement retailers Lowe's and Home Depot showed sales holding up better, with consumers spending on essentials and opening their wallets for good deals. Home Depot said this week that comparable sales growth accelerated in the US during the latest quarter, after a weak couple of years in which consumers deferred spending on big-ticket projects. Lowe's shares gained after earnings beat estimates and the home-improvement supplier said that it agreed to buy Foundation Building Materials. BLOOMBERG
Yahoo
17 hours ago
- Business
- Yahoo
James Hardie stock collapses nearly 35% as US housing slump hits building materials
James Hardie (JHX) stock tumbled nearly 35% on Wednesday as the maker of high-end home siding pointed to a weak US housing market and homeowners reluctant to spend on big projects. The stock, listed in the US and Australia, saw its biggest one-day drop since 1973, according to Bloomberg data. The company's profit declined 28% year over year during its fiscal first quarter. Net sales tumbled 9% over the same period. "Uncertainty is a common thread throughout conversations with customer and contractor partners," CEO Aaron Erter said during the company's earnings call. James Hardie pointed to "softer demand," citing a slowdown in single-family construction activity, especially in the southern part of the US. Read more about James Hardie's stock moves and today's market action. High interest rates have hit virtually every corner of the housing market, resulting in stagnant sales and home starts, and weakness in big projects requiring home equity lines of credit or other loans. "Homeowners are deferring large-ticket remodeling projects like re-siding, and affordability remains the key impediment to improvement in single-family new construction," Erter said. Home improvement retailers Lowe's (LOW) and Home Depot (HD) echoed a similar sentiment, though shares of both companies fared far better following their results this week. "Our customers still tell us that the rate environment is giving them pause on larger remodeling projects that would typically require debt financing," Home Depot CFO Richard McPhail told analysts during the company's earnings call on Tuesday. Lowe's said Wednesday it expects the overall home improvement market to remain flat for the full year. "We're still working through some short-term challenges, including elevated mortgage rates, cautious consumer affordability remains a pressure point that results in the lock-in effect that we've been seeing and also a depressed housing market," Lowe's CFO Brandon Sink said during the company's earnings call. Tariffs have been a central concern for retailers under President Trump's trade policy, but both home improvement retailers have struck an optimistic tone about managing higher costs. Home Depot noted that more than half of its products are sourced domestically and won't be affected by tariffs. Lowe's said about 60% of its goods are US-sourced, with 20% coming from China, representing a significant shift from seven years ago. Ines Ferre is a Senior Business Reporter for Yahoo Finance. Follow her on X at @ines_ferre. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17 hours ago
- Business
- Yahoo
James Hardie stock collapses nearly 35% as US housing slump hits building materials
James Hardie (JHX) stock tumbled nearly 35% on Wednesday as the maker of high-end home siding pointed to a weak US housing market and homeowners reluctant to spend on big projects. The stock, listed in the US and Australia, saw its biggest one-day drop since 1973, according to Bloomberg data. The company's profit declined 28% year over year during its fiscal first quarter. Net sales tumbled 9% over the same period. "Uncertainty is a common thread throughout conversations with customer and contractor partners," CEO Aaron Erter said during the company's earnings call. James Hardie pointed to "softer demand," citing a slowdown in single-family construction activity, especially in the southern part of the US. Read more about James Hardie's stock moves and today's market action. High interest rates have hit virtually every corner of the housing market, resulting in stagnant sales and home starts, and weakness in big projects requiring home equity lines of credit or other loans. "Homeowners are deferring large-ticket remodeling projects like re-siding, and affordability remains the key impediment to improvement in single-family new construction," Erter said. Home improvement retailers Lowe's (LOW) and Home Depot (HD) echoed a similar sentiment, though shares of both companies fared far better following their results this week. "Our customers still tell us that the rate environment is giving them pause on larger remodeling projects that would typically require debt financing," Home Depot CFO Richard McPhail told analysts during the company's earnings call on Tuesday. Lowe's said Wednesday it expects the overall home improvement market to remain flat for the full year. "We're still working through some short-term challenges, including elevated mortgage rates, cautious consumer affordability remains a pressure point that results in the lock-in effect that we've been seeing and also a depressed housing market," Lowe's CFO Brandon Sink said during the company's earnings call. Tariffs have been a central concern for retailers under President Trump's trade policy, but both home improvement retailers have struck an optimistic tone about managing higher costs. Home Depot noted that more than half of its products are sourced domestically and won't be affected by tariffs. Lowe's said about 60% of its goods are US-sourced, with 20% coming from China, representing a significant shift from seven years ago. Ines Ferre is a Senior Business Reporter for Yahoo Finance. Follow her on X at @ines_ferre. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21 hours ago
- Business
- Yahoo
James Hardie stock collapses 35% as US housing slump hits building materials
James Hardie (JHX) stock tumbled 35% on Wednesday as the maker of high-end home siding pointed to a weak US housing market and homeowners reluctant to spend on big projects. The stock, listed in the US and Australia, saw its biggest one-day drop since 1973, according to Bloomberg data. The company's profit declined 28% year over year during its fiscal first quarter. Net sales tumbled 9% over the same period. "Uncertainty is a common thread throughout conversations with customer and contractor partners," CEO Aaron Erter said during the company's earnings call. James Hardie pointed to "softer demand," citing a slowdown in single-family construction activity, especially in the southern part of the US. Read more about James Hardie's stock moves and today's market action. High interest rates have hit virtually every corner of the housing market, resulting in stagnant sales and home starts, and weakness in big projects requiring home equity lines of credit or other loans. "Homeowners are deferring large-ticket remodeling projects like re-siding, and affordability remains the key impediment to improvement in single-family new construction," Erter said. Home improvement retailers Lowe's (LOW) and Home Depot (HD) echoed a similar sentiment, though shares of both companies fared far better following their results this week. "Our customers still tell us that the rate environment is giving them pause on larger remodeling projects that would typically require debt financing," Home Depot CFO Richard McPhail told analysts during the company's earnings call on Tuesday. Lowe's said Wednesday it expects the overall home improvement market to remain flat for the full year. "We're still working through some short-term challenges, including elevated mortgage rates, cautious consumer affordability remains a pressure point that results in the lock-in effect that we've been seeing and also a depressed housing market," Lowe's CFO Brandon Sink said during the company's earnings call. Tariffs have been a central concern for retailers under President Trump's trade policy, but both home improvement retailers have struck an optimistic tone about managing higher costs. Home Depot noted that more than half of its products are sourced domestically and won't be affected by tariffs. Lowe's said about 60% of its goods are US-sourced, with 20% coming from China, representing a significant shift from seven years ago. Ines Ferre is a Senior Business Reporter for Yahoo Finance. Follow her on X at @ines_ferre. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
