James Hardie Industries N.V. (JHX) reported a net loss for the six months to 30 September of US$97.5 million, down from a US$154.9 million profit for the previous corresponding period. Looking ahead James Hardie said that there were signs of a recovery in the US and Australian housing construction markets and that for the full year to 30 March 2010 the company would post a profit towards the upper end of analyst estimates of between US$77 million and US$115 million.

”Management cautions that market conditions remain uncertain and the upcoming northern hemisphere winter is expected to be a very challenging period for the company to generate significant operating earnings,” the company said.

Turning to the results for the current half year, before the inclusion of costs associated with asbestos, ASIC expenses and tax adjustments the materials producer reported a US$79.2 million profit for the half year, up 4%.

The company noted unfavourable asbestos adjustments of US$182.5 million for the half-year, a result of the appreciation of the Aussie dollar.

Economic conditions continue to pose challenges for James Hardie in the US, the company noted, with housing starts down 15% for the September quarter from the previous quarter, while off 74% from the 2.265 million housing starts at its peak in September 2006.

CEO, Louis Gries, said the US residential construction market remains at near historical low levels.

“In this low-demand environment, the business continues to perform well financially and has stayed on strategy with product leadership initiatives,” Mr Gries added.

The company said it would continue to make contributions to the Asbestos Injuries Compensation Fund (AICF), which it was unable to make this year as a result of the downturn in the earnings for the company.

The Federal Government lent James Hardie $160 million in November to maintain contributions to the AICF.

At the close Friday, James Hardie shares were trading at $7.40.