Eagle Materials Inc reports record 1Q results, USA

Eagle Materials Inc reports record 1Q results, USA
Published: 03 August 2005

For the quarter ended June 30, 2005, revenues and net earnings were US$205m and US$35m, respectively. Revenues increased 36 per cent over the prior year first quarter and net earnings increased 50 per cent over the same period last year. Diluted earnings per share for the first quarter of fiscal 2006 were US$1.91 compared with US$1.23 in the same period a year ago, a 55 per cent increase.

The company also raised its earnings guidance for fiscal 2006 to a range of US$7.30 to US$7.60, and expects to report earnings ranging from US$2.10 to US$2.30 per diluted share for the second quarter of fiscal 2006 ending September 30, 2005.

Operating earnings from cement increased 23 per cent to US$16m for the first quarter this year from $13m for the same quarter last year. The earnings gain was due primarily to a record high average net sales price, record high sales volumes and the resulting positive impact of the Illinois Cement acquisition.

Cement revenues for the first quarter totaled US$76m, 34 per cent greater than the US$56m for the same quarter a year ago. US$10m of the revenue gain is attributable to Eagle’s acquisition of its partners’ 50 per cent interest in Illinois Cement Company, which closed in the fourth quarter of fiscal 2005. Cement sales volume for the first quarter totaled 898,000t, 18 per cent above the 758,000t for the same quarter last year. Margins were negatively impacted by increased purchased cement sales volumes of 164,000t for the first quarter, which were 72,000t greater than the purchased cement sales volumes for the first quarter a year ago. 

Concrete sales volume increased 24 per cent for the first quarter this year to 233,000 cubic yards from 188,000 cubic yards for the same quarter last year. Its concrete quarterly average net sales price of US$58.37 per cubic yard for the first quarter of fiscal 2006 was a record and was six per cent higher than the $54.85 per cubic yard for the first quarter a year ago. Aggregates operation reported sales volume of 1.6Mt for the current quarter, 30 per cent greater than the 1.2Mt reported in the first quarter last year. Aggregates quarterly average net sales price was a record high $5.69 during the first quarter and was two per cent above last year’s first quarter aggregates average net sales price.