James Hardie shares hit record high - The Australian

JAMES Hardie shares have hit a record high after it more than doubled its first half profit.

The building products maker made a net profit of $US194 million ($A208.52 million) in the six months to September 30, up from $US84 million in the same period in 2012.

Much of that was attributable to a 25 per cent sales revenue increase in the US and Europe during the second quarter of 2013/14.

James Hardie's Asia Pacific business also increased sales, but the stronger US dollar muted earnings growth.

Its shares gained as much as 15.6 per cent on Thursday, hitting an all time high of $12.07.

At 1303 AEDT the shares were up $1.46, or 14 per cent, at $11.90.

Chief executive Louis Gries said construction of new homes in Australia had improved, but was still weaker than the company would like.

"Detached homes, where we make most of our money, is up but not up near as much as medium density," he told analysts.

The renovation market was not as strong, but Mr Gries said he was not worried.

"That's kind of unexplainable to me. I'm not concerned about the Australian market," he said.

"It looks to me like it's going to be a good market."

An 11 per cent decline in the Australian dollar between late March and the end of September also reduced the value of the company's asbestos liabilities by $US90.4 million ($A97.17 million).

Chief financial officer Russell Chenu said the asbestos fund had paid $A72.8 million worth of claims during the half year, and the number of claims were above expectations.

"We have seen some concerning trends in mesothelioma claims," he told analysts.

"We don't fully understand exactly the causes of the increases in claims as of yet."

The company's net operating profit in the six months to September, which excludes items such as asbestos and legal liabilities, was $US108 million ($A116.09 million), up from $US83 million in the previous corresponding period.

James Hardie expects to make a full year operating profit, excluding asbestos liabilities, legal costs and tax adjustments, of between $US180 and $US195 million, up from $US141 million in the previous year.

It will pay an interim dividend of eight cents per share, up from five cents per share 12 months ago.