James Hardie to defend class action in Australia over alleged forecast breaches
Overview of the Class Action Lawsuit and Company Response
Background of the Lawsuit
June 9 (Reuters) - James Hardie Industries said on Tuesday it would defend itself against a class action lawsuit filed in an Australian court alleging breaches related to the fibre cement maker's earnings forecast.
Details of the Proceedings
The proceeding has been brought on behalf of investors who acquired interests in certain James Hardie securities between May 21 and August 19 last year, the company said in a statement.
The case alleged that James Hardie may have breached certain provisions under the country's corporate, regulatory and consumer laws relating to statements on its future financial performance measures mentioned in the period above.
Company's Position
The company said it is in compliance with its disclosure obligations, and will defend itself against the proceedings.
Media Reports and Further Allegations
Local Media Coverage
On Monday, a local media report said a lawsuit has been filed against James Hardie to investigate if it failed to disclose adverse conditions affecting its North American fibre cement business before August 20, 2025.
Forecast Adjustments Under Scrutiny
The case will also consider if James Hardie should have corrected or withdrawn its 2026 earnings forecast to the end of March 31, the report said.
James Hardie’s Financial Forecasts
2026 Earnings Forecast
Last year in May, James Hardie said it expected low single-digit growth in total adjusted operating earnings in 2026.
North American Market Outlook
For its biggest market North America, it forecast low single-digit growth in net sales and an earnings before interest, taxes, depreciation and amortisation margin of 35%.
The company's North America fibre cement business is now part of its Siding & Trim division.
(Reporting by Sherin Sunny in Bengaluru; Editing by Subhranshu Sahu)
