Texas Industries returns to full-year profit
Texas Industries' turnover increased by 4.1% to US$647m in the financial year to the end of May, and the EBITDA jumped from US$13.2m to US$33.6m. After an interest charge 26.8% lower at US$34.4m, the running loss dropped from US$34.4m to US$1.2m and a the pre-tax profit of US$8.5m was achieved, compared with a US$106.8m loss in the previous accounting year. Net debt at the end of May was 6.4% higher at US$570.1m giving a gearing level 6.0% higher at 81.7%.
"The pace and magnitude of a recovery in construction activity remains challenging to predict," stated Mel Brekhus, CEO. "Our focus continues to be on doing everything we can to ensure we have the assets and cost profile to maximise our profitabilty in any market condition. Toward that end, I am excited to be nearing the completion of construction and beginning of the commissioning this fall of our cement capacity expansion in central Texas."
Cement shipments increased by 8.5% to 3.25Mt (3.58Mst as the turnover from the cement division rose by 9.8% to US$315.3m. The US$20.5m trading profit compares with a US$10.2m loss in the previous trading period. The Texas share of cement sales was reduced from 71% to 68% as Californian cement deliveries advanced by 21% compared with a 3% rise in Texas.
The average cement price for the year was a marginal 0.1% ahead at US$85.7/t (US$77.75/st), with a 1% increase in Texas comparing with a 2% decline in California. Prices in the final quarter showed an average reduction of 1.3%, with volumes improving by 4% in Texas and by 7% in California. The gain from the sale of emission credits in California was US$0.8m higher in 2011/12 than in the previous year.
Turnover from the aggregates division improved by 1.2% to US$174.6m and the underlying trading profit improved by 9.3% to US$24.8m. Aggregates shipments declined by 1.9% to 10.94Mt (11.84Mst), with the average price declining by 2% to US$7.97 per tonne (US$7.23 per short ton).
In the final quarter, prices were 0.4% higher. The ready-mixed concrete and other operations reported a turnover 1.2% lower at USS231.7m and a US$14.2m trading loss, which became a divisional profit of US$25.0m, after taking into account the gain on the sale of the packaged products operation to CRH in April.
The ready-mixed concrete operation sold 0.7% less volume with 1.83Mm³ (2.40m cubic yards), but prices did recover by 1.6% to US$99.48/m3 (US$76.06 per cubic yard).
