UPDATE 1-James Hardie Q4 slumps, suspends dividends
* Q4 operating profit slumps, hit by U.S. housing
* Dividend suspended until economic conditions improve
* Outlook for housing remains difficult (Adds company comment)
WELLINGTON, May 20 (Reuters) - Building materials group James Hardie Industries NV (JHX.AX) posted a 57 percent dive in fourth-quarter operating profit and suspended its dividend payments as it struggles with a slump in U.S. home building.
The company, which makes 80 percent of its earnings in the United States, warned on Wednesday that the outlook for construction work there was tough, although a slow recovery could begin later this year.
"We are adjusting and managing our production schedules in an on-going effort to match output with demand," Chief Executive Louis Gries said in a statement.
January-March net operating profit, excluding costs related to plant closure and compensation payments to victims of asbestos-related diseases, fell to $7.2 million from $16.6 million a year earlier.
For the 12 months ended March, net operating profit excluding asbestos-related expenses and plant closure costs fell to $96.9 million from $173.8 million a year earlier. Hardie had previously said it was comfortable with the middle range of analysts forecasts of operating profit of $91 million to $110 million.
The company said it would not pay a final dividend to preserve capital and suspended future dividends until global economic conditions improved signficantly.
James Hardie's shares closed on Tuesday at A$4.39. The stock has fallen 5.6 percent so far this year, underperforming a 2.5 percent gain in the broader market .AXJO.
The company is focusing on cutting costs and increasing its market share to cope with the downturn in the U.S. In November it said it would suspend production at two U.S. plants to cope with falling demand.
The company 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.
In April it said it was unlikely to be able to contribute to the fund in the 2010 financial year, due to the impact on earnings from the recession. ($1=A$1.29) (Reporting by Adrian Bathgate)
