J. HARDIE SAYS HIGHER NET REFLECTS RATIONALISATION
James Hardie Industries Ltd <HAHA.S> said
the 28 pct increase in its 1986/87 net profit reflected the
benefits of continuing rationalisation and consolidation of
Australian activities and expansion in the U.S.
    The diversified building products group reported net
earnings rose to 60.58 mln dlrs in the year ended March 31 from
47.42 mln in 1985/86. It lifted annual dividend to 24 cents
from 22 with a final of 13, against 11 previously.
    Hardie had concentrated resources on building up its core
businesses of building products, paper merchanting and
technology and services, it said in a statement.
    Hardie said it sold a number of businesses during the year
which were unable to meet objectives for return on investment
or market share and some non-core units.
    This resulted in a decline in sales to 1.50 billion dlrs
from 1.56 billion, but also contributed to a fall of about 100
mln dlrs in borrowings by year-end and a 36 pct drop in
interest expense to 29.16 mln dlrs, it said.
    Hardie said a 42 pct jump in second-half net earnings to
29.66 mln dlrs from 20.92 mln a year earlier was particularly
pleasing in view of the difficult trading conditions faced by
the building products businesses in Australia.
    The problems in U.S. Irrigation operations which adversely
affected 1985/86 earnings have been overcome, Hardie said.
    It said the process of rationalisation and consolidation
had continued into the current year as had expansion into the
U.S.
    Hardie said it could now look forward to a period of
development and further growth in Australia and overseas after
carrying through a long and expensive process of eliminating
asbestos, the group's original prime raw material, from its
fibre cement building products over the past eight years.
 REUTER
