Texas Industries’ first quarter turnover, to the end of August, increased by 12.3% to US$271.7m, while the trading profit jumped by 85.2% to US$45m.
Higher cement prices have had a major beneficial effect on the company’s margins. Cement prices rose by 15.2% to US$84.48 per short ton and aggregates prices increased by 15.4% while ready-mixed concrete prices were up by 10.3%. Further price increases of US$12/st have been announced by Texas Industries from next January for Texas and from the first of March next year for California.
Cement shipments in the period rose by 3.4% to 1.26Mt, but aggregates and ready-mixed concrete shipments were both lower, in part affected by unusually hot weather and water restrictions in northern Texas. The new cement plant in California is expected be commissioned in early in the new year, doubling the existing capacity to 2.1Mt (2.3Mst) and replacing the old kiln capacity.