The world's biggest fibre cement maker, James Hardie Industries, adjusted its annual profit forecast range a little higher on Tuesday, even as a US housing slowdown knocked 10 per cent off quarterly profit, sending its shares up sharply.

The company, which sells building materials such as decking and trim besides cement, said soft demand meant sales hardly grew in the three months to December 31 while costs rose, squeezing margins and pushing operating profit down to $US65.9 million ($90.79 million).

The US housing sector, its biggest market, has been stalled by higher mortgage rates in recent months, already prompting Hardie to slash its full-year outlook in November, when single family home completions hit an 18-month low.

But in a show of confidence in a recovery, the Australia-listed company lifted the bottom end of its range for annual operating profit slightly, raising it to $US295 million from $US280 million. It trimmed the upper limit to $US315 million from $US320 million, raising the midpoint by $US5 million.