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SYDNEY: Building products company James Hardie on Monday announced annual net profit of 150.8 million US dollars, after a loss of 506.7 million a year earlier when it made provisions for victims of asbestosis.
The group, which earns most of its income in the US, said that excluding asbestos-related expenses and tax-related benefits in the year to March, operating profit rose to 222.2 million dollars from 208.9 million.
The results were in line with guidance in March but James Hardie Industries NV warned that the US housing slowdown was continuing to affect its earnings.
"In North America, there is still considerable uncertainty over the outlook for new residential housing construction activity," the company said in statement.
"Despite the recent slight improvement in new housing starts, the supply of new homes for sale appears to still be greater than demand, and builder confidence levels remain low," James Hardie said.
In February, three James Hardie directors, including chairwoman Meredith Hellicar, resigned after Australia's corporate watchdog launched legal action against the company.
The Australian Securities and Investments Commission (ASIC) accused James Hardie of allegedly misleading the stock market about its liabilities to asbestos disease victims.
The ASIC civil action centres on the company's assurances before its 2003 relocation from Australia to the Netherlands that a compensation foundation for asbestos victims was fully funded and all liabilities to asbestos victims had been met.
The foundation turned out to be under funded by some 1.3 billion dollars (1.01 billion US).
ASIC chairman Jeffrey Lucy said the action would not affect a deal under which James Hardie agreed to pay 1.55 billion dollars into a compensation fund that will pay out an estimated four billion dollars over the next 40 years.
- AFP/so
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