TXI today reported financial results for the quarter and year ended May 31, 2008. During the quarter ended May 31, 2008, average cement prices declined 3% on a year-over-year basis but sequentially increased 2% compared to the quarter ended February 29, 2008. Both price movements were primarily due to changes in the geographic mix of shipments between the Texas and California markets and product mix shifts within the markets. Cement price increases announced in April for Texas were partially successful. In addition, TXI has announced cement price increases for South and Central Texas of $5 per ton effective July 1, 2008 and announced another $5 per ton increase in both areas effective October 1, 2008.
"We are extremely pleased to have the new cement plant in California up and running," stated Mel Brekhus, Chief Executive Officer. "The new plant, which was completed in May, will yield significant efficiencies in energy, labor and repair and maintenance compared to the plant that has been retired. In addition, the expansion of TXI’s cement plant in Central Texas is well under way. That plant is scheduled to begin operations in about 18 months."
In the Texas market, which accounted for approximately 82% of total TXI revenues in FY08, overall construction activity continued to generate a level of cement consumption that exceeded cement production capacity. California cement consumption trends continued to follow the decline in overall construction activity in that state. As demand for cement has declined in California, imports of cement have fallen as well.