Wet weather dampens Eagle Materials' 1Q

Wet weather dampens Eagle Materials' 1Q
Published: 04 August 2015

Tagged Under: Eagle Materials USA Results 

Eagle Materials' turnover, including its share of the Texas Lehigh cement joint venture, increased by 4.4 per cent to US$312m  for the first quarter of fiscal 2016 ended 30 June 2015. The trading profit improved by 0.9 per cent to US$60.4m and after an interest charge 10.7 per cent higher at US$4.49m, the pre-tax profit was ahead by just 0.2 per cent to US$55.9m and the net attributable profit advanced by a marginal 0.1 per cent to US$37.8m.  Net debt at the end of June stood at US$585.1m, giving a gearing level of 55.8 per cent.

Cement turnover was off by 0.4 per cent to US$125.1m, with the wholly-owned operations improving by 5.4 per cent to US$98m while Eagle's share of the Texas Lehigh joint venture declined by 17.1 per cent to US$27m. The trading profit was 25.4 per cent higher at US$25.7m. Consolidated cement deliveries were 6.8 per cent lower at 0.91Mt (1.09Mst). Volumes in the wholly-owned operations were 1.6 per cent lower and in the Buda joint venture there was a 25.4 per cent drop.  Exceptionally heavy rainfall, notably in Texas led to the reduction in volumes.  The average cement price, however, improved by 8.5 per cent to US$108.45/t  (US$98.39/st). 

Turnover from aggregates and ready-mixed concrete was 9.1 per cent ahead at US$28.3m, while the trading profit was ahead by 42.0 per cent to US$1.93m.  Aggregates shipments declined by 18.5 per cent to 0.61Mt (0.67Mst) but the average price was 7.3 per cent higher at US$8.75/t.  The ready-mixed concrete volume increased by six per cent to 0.19Mm³, as the average price was 8.9 per cent higher at US$120.39/m3.   

The plasterboard turnover improved by 2.1 per cent to US$115.1m while the trading profit rose by 9.3 per cent to US$40.9m as the plasterboard volume increased by 1.4 per cent and prices improved by 1.1 per cent.  Turnover declined by 11.5 per cent to US$20.8m and the trading profit fell by 20.1 per cent to US$6.0m, with the average sales price being 1.1 per cent lower at US$555.33/t (US$503.80/st) on volumes that were some 4.2 per cent lower overall, with external sales declining by nine per cent while internal volumes grew by four per cent.