Florida Rock Industries, Inc today announced net income of $36,054,000 or $.54 per diluted share for the third quarter of fiscal year 2007 versus $58,317,000 or $.87 per diluted share for the same quarter of fiscal year 2006. Merger expenses of $4,422,000 ($2,852,000 after tax) are included in this third quarter net income.
Consolidated total sales for the quarter decreased 23.6% to $275,631,000 from $360,993,000 in the same quarter last year driven by volume decreases in all three segments and lower sales prices for cement and concrete block. Aggregates volume decreased 20.9%, ready-mix yards decreased 25.8%, block volume fell 52.9% and cement tonnage decreased 27.5% over the third quarter of 2006. Aggregate prices at producing locations were up 16.8% over the third quarter last year and ready-mix concrete prices held on to a 3.6% year over year gain.
Third quarter FY 2007 operating profit decreased 40.0% to $54,181,000 as compared to $90,296,000 in the third quarter of 2006. There are no real estate gains included in this quarter’s operating profit versus $1,621,000 for the same quarter last year.
Selling, general and administrative expenses for the third quarter of fiscal year 2007 were $30,294,000 or 11.0% of sales as compared to $32,730,000 and 9.1% of sales for the third quarter of 2006. The dollar decrease is primarily attributable to the decrease in profit sharing and management incentive compensation, which is tied to earnings exclusive of real estate gains. This year’s third quarter included $4.4 million of expenses (before taxes) related to the proposed merger of the Company with Vulcan Materials Company.
Commenting on the third quarter of fiscal year 2007 results, President and CEO John Baker stated that:
“While the significant decline in residential construction remains with us and is yet to level out, non-residential and transportation spending remain strong. We continue to focus on our costs even as we pursue the remaining steps to consummate our pending merger with Vulcan.”
The outlook for non-residential construction, highway and infrastructure spending remains positive but residential construction continues to show weakness with no clear signs of leveling, the company said in its statement.