A forecast of 1,000 additional claims for asbestos-related compensation and the cost of a move to expand in Europe has smothered James Hardie's full-year profit.
The building material supplier's profit for the year to March fell 47 per cent to $US146.1 million ($A192.6 million).
Claims in 2017/18 for mesothelioma, a cancer caused by asbestos exposure, were five per cent higher than the previous year, leading consultancy firm KPMG to decide a surge in claims in recent years will not be temporary.
It has elevated James Hardie's asbestos-related disease liabilities by $A195.8 million, or 12 per cent, to $A1.85 billion.
The remodelled estimate anticipates 4,528 mesothelioma claims over the next 50 years - up from the previous forecast of 3,520.
James Hardie was involved in the manufacture and distribution of products containing asbestos until 1987.
Asbestos-related claims often take more than 40 years from exposure to settlement.
Also impacting the bottom line was $US10 million in costs related to James Hardie's acquisition of German-based building material supplier Fermacell.
James Hardie's adjusted net operating profit, which excludes asbestos liabilities, rose 17 per cent to $US291.3 million, beating than the company's February estimate of $US260 million to $US275 million.
Shares in James Hardie were up 92 cents, or 4.1 per cent, at $23.37 at 1510 AEST.
The company's global net sales grew seven per cent to $US2.1 billion, thanks to higher sales prices and volumes in the company's North America Fibre Cement division, as well as stronger sales volumes in the International Fibre Cement business.
The formerly Australian-based business, now domiciled in Ireland, credited much of the earnings growth in its international business to stronger sales and improved market share in Australia.
It expects net sales in Australia to trend in line with the average growth of the domestic housing market and steady growth in the US housing market to continue in the year ahead.
Chief executive Louis Gries, who told investors he expects to retire in the next 18 months, said the company entered its 2018/19 fiscal year without any constraints on capacity, as it had suffered in the first half of 2017/18.
"We had a bumpy road we had to take care of and I think we have," he said.
ASBESTOS CLAIMS A BLOW TO JAMES HARDIE'S PROFIT:
* Net profit down 47pct to $US146.1m
* Sales up 7pct to $US2.05b
* Final unfranked dividend up 2 US cents to 30 US cents
