James Hardie Industries Concludes New Zealand Weathertightness Case
James Hardie Industries plc (“James Hardie”), announced that the weathertightness litigation (Case No. CIV-2015-404-3080, previously described by James Hardie as the “Waitakere litigation”) brought against James Hardie before the Auckland High Court has ended via a negotiated commercial agreement (the “agreement”) with the plaintiff. The Waitakere litigation trial was planned to be a 32-week trial, scheduled to commence on 8 May 2023 in the Auckland High Court; the agreement discontinues the Waitakere litigation in its entirety.
The detailed terms of the agreement are confidential and both parties are satisfied with the outcome. There is no admission of liability by any party and there is a full and final settlement of all claims arising directly or indirectly out of the Waitakere litigation.
James Hardie will record the entirety of the costs associated with this agreement in the Fourth Quarter of its Fiscal Year 2023 financial results; the expense will be recorded in General Corporate Costs. This agreement was not considered when the Fiscal Year 2023 Adjusted Net Income guidance was announced on 14 February 2023.
James Hardie CEO Mr. Aaron Erter, said, “We are satisfied with this outcome as it allows us to move forward with a focus on our operations and our future growth. This agreement makes commercial sense for us in the context of the costs of a trial and any appeal and does not change our continued belief that we behaved as a responsible manufacturer.” Speaking to the impact on FY23 Adjusted Net Income, Mr. Erter stated, “There is no change to our Adjusted Net Income guidance range announced on 14 February 2023, after recording the expenses associated with this agreement.”
Please see our condensed consolidated financial statements dated 31 December 2022, for further description of New Zealand weathertightness.
James Brennan-Chong – Director of Investor Relations and Market Intelligence – firstname.lastname@example.org – +61 2 9638 9205
Source: James Hardie Industries plc