profit

James Hardie raises 2021 profit forecast on high demand for renovation

Adds details on markets, 2021 forecast

Oct 14 (Reuters)Australian building materials supplier James Hardie Industries JHX.AX on Wednesday raised its full-year profit forecast and said it expected to post record second-quarter results, boosted by solid demand for its services across markets.

Since the COVID-19 pandemic related shutdowns hammered sales earlier in the year, there has been a recovery in Asia Pacific and European markets.

James Hardie, the world’s biggest fibre cement maker, said the all-time high quarterly sales were “made possible by having all three operating regions deliver growth above market.”

In August, it said sales in North America, one of its biggest markets, were buyoed by homeowners turning to renovation amid the pandemic.

The company increased its fiscal 2021 forecast for underlying net operating profit after tax (NOPAT) to between $380 million and $420 million, from an earlier projection of $330 million and $390 million.

It will report its second quarter results on Nov. 10.

(Reporting by Anushka Trivedi and Nikhil Kurian Nainan in Bengaluru; Editing by Chris Reese and Shinjini Ganguli)

((Anushka.Trivedi@thomsonreuters.com; +918061823241;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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Planning a home renovation? Here’s how to make sure you profit from it

How your space functions and feels matters now more than ever, especially if your new norm is an everything-at-home lifestyle; work, play and living. And, by this point in the pandemic, if your space isn’t optimal, you’ve probably exhausted all the furniture- and room-rearranging options available to you. So naturally, if you own, home improvements aimed at increasing the livability and workability of your space are probably on your mind.

Whether it’s a long-planned or pandemic-induced renovation, here’s how to do the math on it.

Begin with the final market value in mind

Before you start breaking up the concrete in your basement in an effort to level out the floor, you’ll want to compare listings and sale prices of properties that are, and are not, upgraded (for condos and townhouses, too). Some of this information can be found online, and your realtor, if you have one, can fill in the blanks of what else is happening in your neighbourhood in terms of prices. No one has a crystal ball for the real-estate market, especially during COVID-19 times, but by gathering up as much pricing data as you can, you’ll better determine guardrails for your renovation budget.

The high-level math on renovations is this; you need to get out the money that you invested in the reno when you sell, and then some, otherwise it’s not worth your while. Also, you need to be able to afford to pay for the improvements.

For example, if you invest $100,000 in an upgraded kitchen, bathroom and basement, but comparable listings show that you’re only going to fetch $80,000 more for your property (from current value), you’re effectively losing $20,000 plus the value of your efforts. On the flip side, if you’re likely to fetch $150,000 more for your property, your costs are

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General Contractor Overhead And Profit And AOB Insurance Scams

A storm is rising, and it is not the type which causes damage to homes and vehicles. It causes damage of a much more insidious nature. Following a storm or other natural disaster, canvassers hired by the “hail cartel”—lawyers or opportunistic general contractors—can be found blanketing a neighborhood and knocking on doors.

“I’m here to get you a new roof,” the canvasser says. They tell the innocent homeowner that he or she has roof damage that they may not have noticed and that they are entitled to 20% more for “general contractor overhead and profit,” even if no general contractor is necessary. They locate and fabricate damages which either did not exist or were pre-existing and ask the homeowner to sign an Assignment of Benefits (AOB) and promise them a new roof at no cost and with no hassle on their part.

This is repeated thousands of times across entire zip codes. A lawsuit is quickly filed against the insurance company, even before they are given notice of a claim. Policyholders are misinformed, contractors circumvent statutory and policy guidelines, contractors and general adjusters inflate damages, and attorneys apply mass tort models with the promise of large attorney’s fees to simple property damage claims.

Claim solicitation efforts such as these have ensnared innocent homeowners in unnecessary lawsuits in recent years by promising big payouts at no cost following hail or other natural disasters. The result of the widespread scheme is higher insurance premiums and less choice in insurance companies throughout many states. AOB scams have become the largest cost-driver in the insurance industry and are having a widespread, detrimental effect on consumers across the country. The mess they create complicates and makes more difficult the carrier’s efforts to subrogate a loss if and when there is a third party responsible for

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Bed Bath & Beyond Posts Surprise Profit on Booming Online Business | Investing News

(Reuters) – Bed Bath & Beyond Inc

on Thursday posted a surprise quarterly profit and its first comparable sales growth in nearly four years, boosted by strong online demand for home furnishing and decor, sending its shares up 17%.

Same-store sales jumped 6% for the second quarter ended Aug. 29, compared with a 1.78% drop estimated by analysts, according to IBES data from Refinitiv, largely helped by an 89% surge in online sales.

The retailer had been struggling to keep pace in a rapidly shifting retail landscape before the pandemic, prompting Chief Executive Officer Mark Tritton to focus more on the company’s online portfolio after taking charge last year.

“The marked improvement in our second quarter financial results reflects the potential of our digital-first, omni-always transformation,” Tritton said in a statement.

The company has benefited from consumers buying new furnishing and home decor online as many are expected to continue working from home and as several school and college begin classes online.

Gross margins also improved 1,000 basis points to 36.7%, driven by improved products prices, lower coupon expenses and fewer markdowns.

The company posted adjusted profit of 50 cents per share, while analysts were expecting a loss of 23 cents per share.

It reported net income of $217.9 million, compared with a loss of $138.8 million a year earlier. Net sales fell 1.2% to $2.69 billion, but beat estimates of $2.60 billion.

(Reporting by Nivedita Balu in Bengaluru; Editing by Anil D’Silva)

Copyright 2020 Thomson Reuters.

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Kingfisher profit boosted as pandemic drives DIY rediscovery

LONDON (Reuters) – The COVID-19 crisis has prompted consumers to rediscover the joy of home improvement, do-it-yourself (DIY) retailer Kingfisher KGF.L said, as it reported a 23% jump in first half profit.

FILE PHOTO: A general view as people queue outside a B&Q DIY store following the outbreak of the coronavirus disease (COVID-19), Watford, Britain, April 26, 2020. REUTERS/Paul Childs

Shares in the group, which owns B&Q and Screwfix in Britain and Castorama and Brico Depot in France and other markets, were up 7% at 0905 GMT on Tuesday, extending 2020 gains to over 30%, after it also said strong second quarter sales had continued.

Like-for-like sales in the second quarter to July 31 soared 19.5% and are up 16.6% in the third quarter so far.

The pandemic has meant people are spending more time at home, they have fewer leisure options and are traveling less.

“The crisis has prompted more people to rediscover their homes and find pleasure in making them better. It is creating new home improvement needs, as people seek new ways to use space or adjust to working from home,” said Chief Executive Thierry Garnier.

The crisis has also boosted shopping online. Kingfisher’s e-commerce sales soared 164% in the first half and now represent 19% of total sales versus 7% in the same period last year.

The group made a first-half adjusted pretax profit of 415 million pounds ($531 million), beating analysts’ expectations and up from 337 million a year earlier.

Total sales fell 1.3% to 5.92 billion pounds, reflecting the impact of the virus in the first quarter when stores were closed.

Kingfisher ended the half with more than 1 billion pounds of cash, and access to around 3.5 billion pounds of total liquidity.

Given its financial position the group intends to pay back to

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