Mr Gries said while the market would stay flat in Australia, improvements were expected to continue across the Tasman in New Zealand. The fibre cement maker swung into loss-making territory during the fourth quarter, as prices fell in the US, despite a higher level of sales, falling US$69.5m into the red for the quarter. For the three months to March 31, the group's net operating profit was US$30.7m, excluding asbestos asset impairments, Australian Securities & Investments Commission expenses, New Zealand product liability expenses and tax adjustments. This was US$4.5m less than in the prior corresponding quarter. Fourth-quarter sales volume and revenues increased in both the USA and European segment and the Asia Pacific Fibre Cement segment. Prices gained slightly in the Asia-Pacific region, but fell for its USA and Europe business, Mr Gries said. Overall, sales rose 7 per cent to $US1.32bn. According to Mr Gries, there was no "big mistakes" with the group's performance, rather missed opportunities. "We were spinning our wheels," he said. In the US, he expected the improvement in the housing market would be sustained over a prolonged period. Mr Gries said James Hardie was investing in capacity expansions on the back of that, fuelling earnings growth next year. Shares were trading about 1.7 per cent lower at intraday trade at $10.27, with the group maintaining its annual dividend at US42c per share, in line with the prior corresponding year. It lifted its payout ratio to between 30 and 50 per cent of earnings from between 20 and 30 per cent.