TXI Reports First Quarter Results; Steel Profits Continue at Record Levels

Texas Industries, Inc. today reported net income of $35.9m ($1.51 per share) for the quarter ended August 31, 2004. The same quarter last year showed a loss of $15.7 million ($.74 per share).

"Steel margins have recovered to levels consistent with acceptable returns while cement margins continue to expand at a steady pace," stated Mel Brekhus, President and Chief Executive Officer. "Current market and industry conditions support the continuation of strong financial results."

Steel operating profit equaled $55.9 million, up from the $10.1 million loss for last year’s quarter. Realized prices improved 67%, more than offsetting increased raw materials costs. Shipments were level with those of a year ago.

Cement, aggregate and concrete operating profit equaled $21.3 million, a 5% increase over the same quarter of a year ago. Heavy June rains in Texas restricted product shipments, offsetting improved realized prices.

"Construction activity remains solid in the Texas and California markets," continued Brekhus. "Steel results continue at record levels despite low levels of nonresidential construction in the United States -- and we know that construction sector will eventually recover."

TXI is a leading supplier of building materials, primarily cement and structural steel. Cement operations serve Texas and California, the two largest cement markets in the nation. Structural steel products are distributed throughout North America.