Eagle's 1H benefits from Lafarge acquisition

First-half turnover for Eagle Materials to the end of September, including its share of the Texan cement joint venture with HeidelbergCement, advanced by 46 per cent to US$535.47m.

The trading profit, which virtually trebled in the comparative period last year, rose by a further 111.7 per cent to US$112.95m. After a net interest charge that rose by 33.3 per cent to US$9750m, reflecting acquisition from Lafarge of two integrated cement works and a number of downstream assets at the end of November last year, the pre-tax profit increased by 124.2 per cent to US$103.20m. A higher tax charge left the net attributable profit ahead by 119.2 per cent at US$70m. 

Net debt 104.2 per cent higher at US$498m at the end of September reflects the acquisition from Lafarge and represents 65.2 per cent of shareholders' funds compared with 48,6 per cent. Part of the financing of that deal came from a US$160m share issue.

Turnover from cement advanced by 60.3 per cent to US$245.96m. Sales by the wholly-owned operations jumped by 79.7 per cent to US$190.18m and the group's share of the Texas Lehigh joint venture improved by 17.1 per cent to US$55.78m. The trading profit increased by 88.4 per cent to US$51.44m as the joint venture in Texas increased its contribution by 15.8 per cent and the wholly-owned businesses reported a near trebling to US$33.82m. Group cement deliveries moved ahead by 56.3 per cent to 2.43Mt (2.68Mt), with the Buda joint venture's volumes growing by 13.7 per cent while the wholly-owned tonnage expanded by 71.5 per cent to 1.96Mt. The average cement price improved by 4.6 per cent to US$94.49 per tonne (US$85.72/st).

Turnover from aggregates and ready-mixed concrete jumped by 104.8 per cent to US$54.63m and last year's US$0.16m trading loss was turned into a US$0.15m profit. The aggregates tonnage rose by 31per cent to 1.74Mt (1.92Mst), with the average price being 30.8 per cent higher at US$8.65/t. Ready-mixed concrete deliveries jumped by 77 per cent to 0.38Mm³ and the average price improved by 22.1 per cent to US$61.69/m3.

The turnover in the plasterboard and related activities advanced by 26.2 per cent to US$234.88m while the trading profit emerged 66 per cent higher at US$72.1m. Plasterboard deliveries increased by 13.5 per cent to 830.4Mm², and the average plasterboard price improved by 21.9 per cent.