Market Overview

James Hardie Industries plc Announces New Reporting Segments

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James Hardie Industries plc (ASX: JHX) ("James Hardie") announced today
that it will change how it presents its financial results for its
reporting segments effective for the quarter ended 30 June 2018.

The financial results for the quarter ended 30 June 2018 will be
released on 10 August 2018. The new segments will be North America
Fiber Cement
, Asia Pacific Fiber Cement, Europe
Building Products,
Other Businesses and Research
and Development
as follows:

  • The North America Fiber Cement segment manufactures fiber
    cement interior linings and exterior siding products in the United
    States. The segment sells these products and related accessories in
    the United States and Canada;
  • The Asia Pacific Fiber Cement segment manufactures fiber cement
    interior and exterior products and systems for internal and external
    building construction applications in Australia, New Zealand and the
    Philippines. The segment sells these products and related accessories
    primarily in Australia, New Zealand and the Philippines;
  • The Europe Building Products segment manufactures fiber gypsum
    boards and cement bonded boards. The segment sells these products and
    fiber cement products manufactured in the United States, along with
    related accessories primarily in Europe;
  • The Other Businesses segment includes certain non-fiber cement
    manufacturing and sales activities in North America, including
    fiberglass windows; and
  • The Research and Development segment represents the cost
    incurred by the research and development centers.

The following segments had no change: (1) North America Fiber Cement,
(2) Other Businesses and (3) Research and Development. The below is a
comparison of the new and changed reporting segments compared to the
relevant prior reporting segments:

 
Prior Segments   New Segments
Segment: International Fiber Cement

Includes: Australia, New Zealand, the Philippines and
Europe fiber cement products

Segment: Asia Pacific Fiber Cement

Includes: Australia, New Zealand and the Philippines fiber
cement products

Segment: Not applicable

Includes: Not applicable

  Segment: Europe Building Products

Includes: Europe fiber cement, fiber gypsum and cement
bonded boards

 

Beginning with the financial documents prepared as of and for the
quarter ended 30 June 2018, any historical segment data included in
those documents will be revised to be consistent with the new reportable
segment structure. The change in reportable segments has no effect on
the Company's financial position, results of operations or cash flows.

The following tables reflect the financial information by quarter and
for the full year ended 31 March 2018 under the new reporting segment
structure:

Asia Pacific Fiber Cement Segment

Operating results for the Asia Pacific Fiber Cement segment were as
follows:

 

APAC FC Segment

US$ Millions

                   
Q1

FY18

  Q2

FY18

  Q3

FY18

  Q4

FY18

 

Full Year Ended
FY18

Volume (mmsf) 120.1 130.0 123.0 121.6 494.7
 
Net Sales (US$ Millions) 101.6 113.4 105.3 105.1 425.4
EBIT (US$ Millions) 26.4 30.5 24.9 26.3 108.1

EBIT Margin (%)

26.0   26.9   23.6   25.0   25.4
 

Europe Building Products Segment

Operating results for the Europe Building Products segment were as
follows:

 

Europe BP Segment

US$ Millions

   

 

Q1

FY18

  Q2

FY18

  Q3

FY18

  Q4

FY18

 

Full Year Ended
FY18

Volume (mmsf) 8.6 9.4 8.7 7.3 34.0
 
Net Sales (US$ Millions) 9.2 10.5 9.2 7.4 36.3
EBIT (US$ Millions) (0.2) 0.3 0.5 (0.3) 0.3

EBIT Margin (%)

(2.2)   2.9   5.4   (4.1)   0.8
 

Note that the above results include the Europe Fiber Cement operations
and do not include historical data for the acquired Fermacell
operations. Historical data, for fiscal year 2018, inclusive of the
acquired Fermacell operations, will be included in the footnotes to the
financial statements for the quarter ended 30 June 2018.

Forward Looking Statements

This Media Release contains forward-looking statements. James Hardie
Industries plc (the "Company") may from time to time make
forward-looking statements in its periodic reports filed with or
furnished to the Securities and Exchange Commission, on Forms 20-F and
6-K, in its annual reports to shareholders, in offering circulars,
invitation memoranda and prospectuses, in media releases and other
written materials and in oral statements made by the Company's officers,
directors or employees to analysts, institutional investors, existing
and potential lenders, representatives of the media and others.
Statements that are not historical facts are forward-looking statements
and such forward-looking statements are statements made pursuant to the
Safe Harbor Provisions of the Private Securities Litigation Reform Act
of 1995.

Examples of forward-looking statements include:

  • statements about the Company's future performance;
  • projections of the Company's results of operations or financial
    condition;
  • statements regarding the Company's plans, objectives or goals,
    including those relating to strategies, initiatives, competition,
    acquisitions, dispositions and/or its products;
  • expectations concerning the costs associated with the suspension or
    closure of operations at any of the Company's plants and future plans
    with respect to any such plants;
  • expectations concerning the costs associated with the significant
    capital expenditure projects at any of the Company's plants and future
    plans with respect to any such projects;
  • expectations regarding the extension or renewal of the Company's
    credit facilities including changes to terms, covenants or ratios;
  • expectations concerning dividend payments and share buy-backs;
  • statements concerning the Company's corporate and tax domiciles and
    structures and potential changes to them, including potential tax
    charges;
  • statements regarding tax liabilities and related audits, reviews and
    proceedings;
  • statements regarding the possible consequences and/or potential
    outcome of legal proceedings brought against us and the potential
    liabilities, if any, associated with such proceedings;
  • expectations about the timing and amount of contributions to AICF, a
    special purpose fund for the compensation of proven Australian
    asbestos-related personal injury and death claims;
  • expectations concerning the adequacy of the Company's warranty
    provisions and estimates for future warranty-related costs;
  • statements regarding the Company's ability to manage legal and
    regulatory matters (including but not limited to product liability,
    environmental, intellectual property and competition law matters) and
    to resolve any such pending legal and regulatory matters within
    current estimates and in anticipation of certain third-party
    recoveries; and
  • statements about economic conditions, such as changes in the US
    economic or housing market conditions or changes in the market
    conditions in the Asia Pacific region, the levels of new home
    construction and home renovations, unemployment levels, changes in
    consumer income, changes or stability in housing values, the
    availability of mortgages and other financing, mortgage and other
    interest rates, housing affordability and supply, the levels of
    foreclosures and home resales, currency exchange rates, and builder
    and consumer confidence.

Words such as "believe," "anticipate," "plan," "expect," "intend,"
"target," "estimate," "project," "predict," "forecast," "guideline,"
"aim," "will," "should," "likely," "continue," "may," "objective,"
"outlook" and similar expressions are intended to identify
forward-looking statements but are not the exclusive means of
identifying such statements. Readers are cautioned not to place undue
reliance on these forward-looking statements and all such
forward-looking statements are qualified in their entirety by reference
to the following cautionary statements.

Forward-looking statements are based on the Company's current
expectations, estimates and assumptions and because forward-looking
statements address future results, events and conditions, they, by their
very nature, involve inherent risks and uncertainties, many of which are
unforeseeable and beyond the Company's control. Such known and unknown
risks, uncertainties and other factors may cause actual results,
performance or other achievements to differ materially from the
anticipated results, performance or achievements expressed, projected or
implied by these forward-looking statements. These factors, some of
which are discussed under "Risk Factors" in Section 3 of the Form 20-F
filed with the Securities and Exchange Commission on 22 May 2018,
include, but are not limited to: all matters relating to or arising out
of the prior manufacture of products that contained asbestos by current
and former Company subsidiaries; required contributions to AICF, any
shortfall in AICF and the effect of currency exchange rate movements on
the amount recorded in the Company's financial statements as an asbestos
liability; the continuation or termination of the governmental loan
facility to AICF; compliance with and changes in tax laws and
treatments; competition and product pricing in the markets in which the
Company operates; the consequences of product failures or defects;
exposure to environmental, asbestos, putative consumer class action or
other legal proceedings; general economic and market conditions; the
supply and cost of raw materials; possible increases in competition and
the potential that competitors could copy the Company's products;
reliance on a small number of customers; a customer's inability to pay;
compliance with and changes in environmental and health and safety laws;
risks of conducting business internationally; compliance with and
changes in laws and regulations; currency exchange risks; dependence on
customer preference and the concentration of the Company's customer base
on large format retail customers, distributors and dealers; dependence
on residential and commercial construction markets; the effect of
adverse changes in climate or weather patterns; possible inability to
renew credit facilities on terms favorable to the Company, or at all;
acquisition or sale of businesses and business segments; changes in the
Company's key management personnel; inherent limitations on internal
controls; use of accounting estimates; the integration of Fermacell into
our business; and all other risks identified in the Company's reports
filed with Australian, Irish and US securities regulatory agencies and
exchanges (as appropriate). The Company cautions you that the foregoing
list of factors is not exhaustive and that other risks and uncertainties
may cause actual results to differ materially from those referenced in
the Company's forward-looking statements. Forward-looking statements
speak only as of the date they are made and are statements of the
Company's current expectations concerning future results, events and
conditions. The Company assumes no obligation to update any
forward-looking statements or information except as required by law.

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