James Hardie Industries plc (NYSE:JHX) Q3 2020 Earnings Conference Call - Final Transcript
Feb 12, 2020 • 06:00 pm ET
All right. Good morning, everyone. Thank you for joining us in our Q3 Fiscal Year 2020 Earnings Call. I will begin by discussing key business results and operational highlights of the third quarter and for the first nine months. Jason Miele will then cover the financial details. And finally, I will come back with an update on our global strategy.
I'm very pleased with the progress our entire James Hardie team has achieved during the first nine months. We are executing our strategy that generated strong financial results in each of the last three quarters. It is a very good start to the transformation that our company embarked on a year-ago.
I would like to take a few minutes now to highlight the key transformational changes that we're making to put some context to the results that we report today. We're currently driving a fundamental transformation in our company. This is not about returning to the Hardie of old. What we're executing is much more significant than that. We executed our plan to go from being a big small company to being a small company. This is about building capabilities and processes that connect to core strengths of our company to generate critical mass, to deliver profitable growth while creating a culture of being a customer-centric company.
We are driving a fundamental transformation across our company. Our goal as a small big company is to deliver sustainable and profitable growth. However, if you look at our results during the past 10 years, we have not met that mark. Let's use North America as an example. When you look at the past 10 years, we have had some good PDG years, and we have had some good EBIT margin years, but we have not accomplished both together. This year, however, we have delivered both. Through nine months, we delivered PG of about 6% plus with EBIT margin of 26% plus. This is a good step in the right direction of where we want the new Hardie to be.
Delivering growth above market and strong EBIT margin consistently is hard to do, but that is our goal across all of our business segments. We believe we are now on the right track, but the fundamental transformation is not easy. There's still a lot of work left to do and there are several key areas we need to focus on and invest in. We need to continue to conduct our businesses together and then focus on critical few opportunities to create value to earn our customers business every day via increased demand of our products with the builders on our contractors. We're having more efficient supply chain to serve our customers better, more enabling tool that make it easy for our customers to sell our products. And with high-impact innovation that expand market opportunities for our customers. When we were able to deliver on all of those objectives, we will truly be a global company that can deliver sustainable and profitable growth. I'm excited