Aug 20 (Reuters) - Fiber cement maker James Hardie

reported a 29% drop in its first-quarter profit on

Wednesday, as elevated borrowing costs weighed on housing demand

and slowed new construction, dragging earnings in its key North

America division.

The Dublin-headquartered firm reported adjusted net income

of $126.9 million for the three months ended June 30, compared

with $177.6 million last year.

That missed the Visible Alpha estimate of $158.5 million.