Australia's James Hardie posts Q1 net loss

SYDNEY Aug 18 (Reuters) - Australian building materials group James Hardie Industries NV (JHX.AX) reported $77.9 million first-quarter net loss on Tuesday, but said it saw signs the U.S. construction market was nearing a bottom.

Hardie said its net operating profit in the June quarter, excluding costs related to compensation payment to victims of asbestos related diseases, rose 4 percent to $41.6 million.

At its full year result in May, the company said it was suspending dividends until economic conditions improve.

Hardie's shares, which closed on Monday at A$5.78, have gained 24 percent so far this year, compared to an almost 18 percent rise in the broader market .AXJO.

The company has focused on cutting costs and increasing its market share in the downturn.

Later on Tuesday the company will hold a meeting in Sydney at which its Australian shareholders will be asked to vote on the first stage of the company's plan to change domicile from the Netherlands to Ireland.

James Hardie was once Australia's top maker of asbestos products, and it has set up a fund to pay compensation for victims of asbestos-related diseases.

It has previously said it would not be able to contribute to the fund in the 2010 financial year, due to the impact on earnings from the recession. (Reporting by Adrian Bathgate)