James Hardie Industries plc (NYSE:JHX) Q3 2023 Earnings Conference Call February 13, 2023 5:00 PM ET

Company Participants

Aaron Erter - Chief Executive Officer

Jason Miele - Chief Financial Officer

Conference Call Participants

Brook Campbell - Barrenjoey

Keith Chau - MST Marquee

Andrew Scott - Morgan Stanley

Lisa Huynh - JPMorgan Chase & Co.

Simon Thackray - Jefferies

Sam Seow - Citi

Niraj Shah - Goldman Sachs

Peter Wilson - Credit Suisse

Anderson Chow - Jarden Australia

Daniel Kang - CLSA

David Pace - Greencape Capital

Paul Quinn - RBC Capital Markets

Lee Power - UBS

Peter Steyn - Macquarie Research

Operator

Thank you for standing by. And welcome to the James Hardie Third Quarter Fiscal Year 2023 Results Briefing. Today’s briefing is hosted by James Hardie’s CEO, Aaron Erter, and CFO, Jason Miele. [Operator Instructions] I would now like to hand the conference over to James Hardie’s CEO, Mr. Aaron Erter. Please go ahead.

Aaron Erter

Thank you, operator. Good morning and good evening to everyone. I am Aaron Erter, CEO of James Hardie and I’d like to welcome all of you to our third quarter fiscal year 2023 briefing.

Turning to Page 2, you will see our standard cautionary note on forward-looking statements. Please note that the presentation does contain forward-looking statements and the use of non-GAAP financial information. For today’s call our CFO, Jason Miele will start by discussing our third quarter fiscal year 2023 financial results. And I’ll follow up with him on a strategic and operational update. We will then open it up for questions. While Jason will spend his time discussing our current fiscal year results. I will spend the majority of my time looking forward and explaining how we intend to continue to derive differentiated results into the future. Before I hand it off to Jason, I would like to take this opportunity to thank all of our employees around the world who remain focused on safely delivering the highest quality products and services to our customer partners despite the significant headwinds we are facing in all three of our operating regions. Our employees truly represent the very best in our industry. And I feel fortunate to work with them. With that, I will hand it off to Jason to discuss our third quarter financial results. Jason?

Jason Miele

Thank you, Aaron. And let's start on page 5 to discuss our global results for the fiscal year 2023 third quarter and year-to- date nine months. In the third quarter, group net sales decreased 4% to US $860.8 million. Global volume was down 11% due to the deceleration of the housing markets we participate around the world. However, in every region, our teams continue to deliver a strong price/mix growth, leading to group net sales down only 4%. In each region, our teams continue to drive strong product mix while executing strategic price increases, leading to price/mix growth of 10% in North America, 6% in Asia Pac and 14% in Europe. In regards to earnings, global adjusted EBIT decreased 19% to $165.4 million and global adjusted net income decreased 16% to $129.2 2 million. Every region's earnings continued to be negatively impacted by inflation. Nine months year-to- date results are much stronger buoyed by the stronger market in the early months of the financial year.