Texas Industries third-quarter loss narrows, USA

Texas Industries, Inc reported a net loss of US$5.8m for the third quarter ending 28 February 2013 compared to a net loss of US$24.3m in the same period a year before.

“Construction activity in Texas and California continued to improve this quarter,” stated Mel Brekhus, Chief Executive Officer. “Gross profit increased US$14.2m on increased sales of US$19.5m. This increase in profitability primarily reflects the benefits of increased shipments in reducing unit costs, and success in increasing efficiencies throughout the company.”

“The commissioning of the second kiln at our central Texas plant is on target to be completed this spring. This additional 1.4Mt of cement capacity, in combination with the East Texas ready-mix assets we acquired last week, places TXI in a strong position to benefit from the recovery in construction that is underway,” added Brekhus.

Cement operating profit for the three-month period ended was US$9.8m compared to a US$2.4m loss the year before. Total cement sales for the three-month period ended February 28, 2013 were US$80.6m compared to US$65.5m for the prior year period. Cement sales increased US$15.1m from the prior year period. The Texas market area accounted for approximately 71 per cent of cement sales in the current period compared to 69 per cent of cement sales in the prior year period. Average cement prices increased two per cent in the Texas market but decreased three per cent in California due to a change in product mix. Shipments increased 27 per cent in the Texas market area and 22 per cent in California.

Aggregates operating profit for the three-month period ended February 28, 2013 was US$2.1m compared to a US$1.3m loss a year ealier. Total segment sales for the three-month period ended were US$30.8m compared to US$22.6m for the prior year period. Stone, sand and gravel sales increased US$8.2m from the prior year period on 28 per cent higher shipments.

On March 22, 2013, TXI’s subsidiaries exchanged their expanded shale and clay lightweight aggregates manufacturing business for the ready-mix concrete business of subsidiaries of Trinity Industries, Inc in east Texas and southwest Arkansas. Pursuant to the agreements, the company transferred TXI expanded shale and clay manufacturing facilities in Streetman, Texas, Boulder, Colorado and Frazier Park, California, and its DiamondPro® product line in exchange for 42 ready-mix concrete plants stretching from Texarkana to Beaumont in east Texas and in southwestern Arkansas, two aggregate distribution facilities in Beaumont and Port Arthur, Texas, and related assets.