Eagle Materials boosted by higher prices

Eagle Materials boosted by higher prices
Published: 27 January 2005

In the nine months to the end of December, Eagle Materials increased turnover by 21.8 per cent to US$463.2m and improved the trading profit by 50.6 per cent to US$121.5m.  The strongest price increases were seen in plasterboard, when prices rose by 26.6 per cent on volumes that were up by 7.1 per cent, while cement prices rose by 5.4 per cent over the nine months, but by 9.2 per cent in the three months to the end of December, to US$71.75 per short ton, or US$79.09 per tonne.  Eagle has announces price increases of between US$5.00 to US$8.00 per short ton of cement, to take effect over the next six months.  Aggregate prices were little changed and ready-mixed concrete prices advanced by just 3 per cent. The cement deliveries for the nine months were 5.6 per cent higher at 1.93Mt (2.13m short tons) and aggregates sales were 20.1 per cent higher at 3.7Mt, while ready-mixed concrete deliveries were 3.3 per cent lower at 0.45Mm3.  The company remains optimistic for 2005 for its two main products, plasterboard and cement and plasterboard prices were increased again on the 10th of January.  The acquisition of the remaining 50 per cent of Illinois Cement Company for US$72m was completed on the 11th of January.