Aug 20 (Reuters) -

Fiber cement maker James Hardie forecast full-year

underlying earnings below estimates on Wednesday, as elevated

borrowing costs in the U.S. and tariffs dampen housing market

activity and demand for its products.

James Hardie forecast adjusted operating earnings

between $1.05 billion and $1.15 billion for the fiscal year

2026, below the Visible Alpha consensus of $1.23 billion. It

earned $1.1 billion in fiscal 2025.

"Over the course of the summer, single-family new

construction activity has been weaker than anticipated and we

have adjusted our expectations to account for softer demand,"

CEO Aaron Erter said in a statement.

"Homeowners are deferring large-ticket remodeling

projects like re-siding, and affordability remains the key

impediment to improvement in single-family new construction."

The company's sales in North America, accounting for

nearly 75% of its topline, declined 12% to $641.8 million in the

quarter ended June 30.

As a result, the Dublin-headquartered firm's adjusted

net income fell to $126.9 million in the first quarter from

$177.6 million last year, missing the Visible Alpha estimate of

$158.5 million.