Texas Industries’ turnover in the first quarter to the end of August declined by 3.0% to US$263.45m. The results were further negatively affected by maintenance work being carried out at both the Texas cement plants during the period, but had been done during the following quarter in the previous year, reducing the pre-tax profit by approximately US$15.5m.
In California, the reduced operational efficiency and the reduced output of the old cement plant had a negative effect on the pre-tax profit of around US$5m. Together these effects contributed to a 39.7% decline in the pre-tax profit to US$26.09m. The new kiln line in California should be lit in November and should be working at design capacity by late spring. Next month should see Texas Industries breaking ground on the new 1.3m tonnes (1.4Mst) cement plant in Central Texas, with completion envisaged by the end of 2009.
The cement prices achieved by Texas Industries were 1.3% higher at US$95.69/st (US$105.48/t), though cement shipments were 7.1% lower at 1.17Mt (1.29Mst). In spite of shipments of aggregates being down by 14.1% to 5.05Mt (5.55Mst), operating margins were broadly maintained. In ready-mixed concrete, deliveries were 1.7% ahead at 0.76Mm³. Prices increased by an average 8.5% for both aggregates and for ready-mixed concrete.