Live on Bloomberg TV

00:00Of course your business bans but the American markets here in Asia as well as the European markets. Just first off how does the post pandemic recovery look across the various regions from your perspective. Good morning Heidi. Thank you very much for having me on the show. You know this is now the eighth straight consecutive quarter that we actually deliver results with growth of our market and strong returns globally. And then what's very important here is that we deliver these results before covered at the onset of cool it and then currently doing covert. And what's very important also is that this past quarter we deliver record results and with double digit growth in both revenue and IBEX in North America Europe and Asia Pacific. And as you have indicated in all three geographies there are various level of market conditions. So here in the US we are right now haven't really good tailwinds of strong demand for housing. And then in Australia with the home builder program that is stimulus that was put in place last July is ready to kick start a very strong tailwind in new home construction horse in Europe. Is the been the market has been so limited. Slow is is really more about renovations and most of Western Europe. But despite those varying degrees of housing market conditions. James Hardie our business model is really about offering the right solutions for the market to allow us to gain share. Jack we've seen as part of this reflation research a shortage and soaring prices for just about everything across the commodities complex. You're talking about lumber all to copper to iron ore. I'm wondering how that's playing into your forecasts. Well you're is an example for the market in North America specifically the US lumber. The lack of lumber as well as the lack of labor have really been an issue right now in terms of new home construction start to completion. And then certainly we'll be seeing a slowdown a little bit this past month with the results that was published this morning. But for us for business that James Hardie in North America one third of our business exposed to new construction but two thirds really in renovation and remodeling. And no workers right now. And as more and more people work from home there is also a need to renovate and read reside and and really change the exterior within their new home. And as for that type of activity lumber is not as much as an issue. And that's where for a company like us where we offer the right solutions in terms of having to deliver the beautifying the home through to our exteriors at the same time do the right protection for their home. So that is an opportunity for our company to continue to grow despite the varying degrees of fluctuation within the housing market today. And yet the market seem to think that your guidance was a little bit conservative. Your stock actually fell despite the record performance that you talk about. Well you know it is for us this is worries about continue to grow above market by taking share away from other categories particularly those that require a lot more labor and more for example in bricks and stones or on stucco or six longer time to Bill. And then the costs of construction is high whereas for our James Hardie products are lightweight and they're also faster to build and faster to to construct. So it is a big value we deliver not only to the builder as well and so deliver to the homeowners of the line in that asset look and protecting their homes at the same time. Against all elements including fire protection for example. Well that offset some of the pressure that you might see perhaps as analysts are concerned right now when it comes to housing that when stimulus funds run out that we won't be seeing so much construction anymore especially given that people are now starting to go back to work. It's the reopening is happening. Will there be as much construction. Well you know it's just if we look at this as the U.S. market today there is a shortage of homes in the US today. And if you look at the data for new construction in the past decade we've really really built as an industry about 7 million single family homes during the past decade. This is roughly about 11 million single family homes each decade. In the previous five decades. So there is no shortage of home. Plus at the same time the homes in the US today existing homes. Again older. No. Older. No. Currently in the U.S. there's 80 million owner occupied homes and 44 million of those homes. So more than 40 years or older. So what you see here is the confluence of not only homes again or older and there is also a need for new new homes. So the the prospect for short term mid-term and long term for new home construction. Now where the housing market in the US continues to be be strong. The only issue right now that we see is that you know we worry about the shortage of lumber and then also the lack of skilled labor. Jack what about the environment of rising rate prospects because is that one of the reasons why you stock was bid down overnight. I'm sorry he you repeat. I said is there a real concern that in an environment where rising rates are on the horizon that that's going to play into the willingness and ability of people to continue as Sheri mentioned going on this home building home renovation borrowing trend. Is that one of the reasons why you stock the reaction in the stock price has been negative. No. You know if you look at you know. Right. I mean it's just the it is a little fluctuation analysis and our share price during the past couple couple days. But I think we look at first is really about we look at long long term value creation. And if you look at our share price since the beginning of 2019 I'll I'll share price have gone up by roughly two hundred 80 percent. So our focus is really about continued to create more value. Now you know company buy by delivering a growth above market they can share from other categories in the market that we participate in around the world. And and and do we translate those into more profitable growth through many faction better and through integrating with our customers to deliver the right products to the MA market at the right time. So that is really the business model that we really execute from around the world.

James Hardie: ‘Strong’ Prospects for U.S. New Home Constructions

Jack Truong, chief executive officer of James Hardie Industries Plc, the world's biggest maker of high performance fiber cement building products for residential housing, discusses the prospects for his company and rising commodity prices. James Hardie reported adjusted net operating profit of $124.9 million, a 44% increase from a year earlier. Truong speaks with Haidi Stroud-Watts and Shery Ahn on "Bloomberg Daybreak: Australia." (Source: Bloomberg)

More From Bloomberg Daybreak: Australia
All episodes and clips