For the first nine months to the end of February, Texas Industries increased turnover by 5.9% to US$472.4m. After a net interest charge 29.4% lower at US$26.8m, the pre-tax loss declined by 41.8% to US$54.0m. However, a reduced tax credit meant that the net loss was just 5.5% lower at US$52.7m. The net debt at the end of February stood at US$627.3m to give a gearing level of 97.9%. Capital expenditure in the period was boosted by investment in the Hunter cement works in Texas and rose by almost 2½ times to US$96.3m.
Commenting on the results, CEO Mel Brekhus said: "Modest improvements in shipments reflect my expectation that improved construction activity will lag the broader economic recovery.”
The cement turnover improved by 11.3% to US$228.3m as cement shipments rose by 10% to 2.36Mt (2.60Mst) while the average price improved by 0.6% to US$86.10/t (US$78.11/st). The trading loss did drop by 81.3% to US$1.2m. In the third quarter, cement deliveries were stable in Texas but advanced by 22% in the California marketing area, with Texas accounting for about 69% of the company volume. Average cement prices improved by 2% in Texas, but eased by 1% in California.
Aggregates shipments were down by 8.3% to 7.55m tonnes (8.32Mst) and the average price declined by 3.0% to US$7.95/t (US$7.21/st) and the turnover from aggregates eased by 3.4% to US$121.7m. The trading profit dropped by 25.6% to US$6.2m. Group ready-mixed concrete deliveries did improve by 7.1% to 1.40Mm³ (1.84yd3) but the average price was off by 0.5% and the trading loss jumped by 62.8% to US$10.2% on a turnover that was 6.2% higher at US$183.1m.