Eagle Materials boosted by acquisition

Eagle Materials boosted by acquisition
Published: 05 February 2014


Including its share of the jointly-owned Texas Lehigh Cement, the turnover of Eagle Materials for the first nine months to 31 December 2013 rose by 37.2 per cent to US$757m.

The trading profit before corporate overheads increased by 67.5 per cent to US$184.7m, of which cement contributed 41.9 per cent. The trading profit advanced by 96.8 per cent to US$166.3m. After a net interest charge 27.6 per cent higher at US$14.2, the pre-tax profit jumped by 107.3 per cent to US$152m and the net profit emerged 103.6 per cent higher at US$101.6m.

Shareholders' funds at the end of December were 17.1 per cent higher than a year earlier at US$805.4m and the gearing level was reduced from 66.9 per cent a year earlier to 47.8 per cent, thanks to the share issue to help finance the cement operations acquired from Lafarge.

Turnover in cement, boosted by the acquisition, rose by 53.1 per cent to US$349.9m. Of this, the wholly-owned operations saw turnover jump by 70.9 per cent to US$265m, while the group's share of the Texas joint venture with HeidelbergCement improved 14.4 per cent to US$82m. The trading margin improved from 19.3 per cent to 22.2 per cent and the trading profit rose by 76.3 per cent to US$77.5m. Cement deliveries attributable to the group improved by 49.8 per cent to 3.44Mt (3.79Mst), with volumes at the Buda joint venture with improving by 11.1 per cent, while the subsidiaries sold 64 per cent more. The average cement price achieved over the first nine months improved by 4.8 per cent to US$94.91 (US$86.10/st), with the price for the third quarter being 5.2 per cent ahead at US$95.91 (US$87.01/st).

Aggregates and ready-mixed concrete contributed a turnover 103.2 per cent higher at US$82.8m, but the trading loss jumped by 137.3 per cent to US$3.6m. The aggregates volume increased by 26.7 per cent to 2.42Mt (2.66Mst) and the average price was 46.7 per cent higher at US$9.77/t (US$8.86/st). Ready-mixed concrete deliveries rose by 71.7 per cent to 0.55Mm³ and the average price improved by 20.7 per cent to US$107.28/ m³.   

The plasterboard and liner operations improved turnover by 25.2 per cent to US$358.7m and the trading profit advanced by 60.4 per cent to US$109.5m, as the plasterboard profit jumped by 90.5 per cent to US90.2m. Plasterboard shipments in the nine months were ahead by 13.1 per cent and the average price rose by 20.9 per cent.