Eagle Materials advances cement volumes by 13%

Eagle Materials advances cement volumes by 13%
Published: 26 July 2016


In the first quarter of its financial year to 31 March, Eagle Materials' turnover, including its share of the Texas Lehigh cement joint venture, increased by 3.3 per cent to US$322.4m. The trading profit advanced by 17.9 per cent to US$71.2m and after an interest charge 13 per cent lower at US$3.9m, the pretax profit was up by 20.4 per cent to US$67.3m and the net attributable profit rose by 20.1 per cent to US$45.4m. The net debt at the end of June stood at US$489.5m, giving a gearing level of 46.3 per cent.

Cement turnover was ahead by 13 per cent to US$141.3m, with the wholly-owned operations increasing by 18.7 per cent to US$116.7m while Eagle's share of the Texas Lehigh joint venture declined by 7.9 per cent to US$24.9m. The trading profit was 22.9 per cent ahead at US$31.6m. Consolidated cement deliveries were four per cent higher at 1.13Mt (1.25Mst). Volumes in the wholly-owned operations were 4.2 per cent higher and in the Buda joint venture there was a 2.8 per cent increase. The average cement price improved by 2.3 per cent to US$91.97/t (US$100.63/st).

Turnover from aggregates and ready-mixed concrete was 21.9 per cent ahead at US$34.5m, while the trading profit was ahead by 91.3 per cent to US$1.37m. Aggregates shipments rose by 41.5 per cent to 0.86Mt (0.94Mst) but the average price was 4.5 per cent higher at US$9.15/t. The ready-mixed concrete volume increased by 0.7 per cent to 0.22Mm³, as the average price was 0.7 per cent higher at US$121.29/m3.

The plasterboard turnover eased by 1.6 per cent to US$113.3m and the trading profit declined by 3.8 per cent to US$39.3m as the plasterboard volume was off by 3.5 per cent and eased by the same percentage. The paperboard turnover rose by 36.3 per cent to US$28.3m and the trading profit advanced by 85.2 per cent to US$11.2m, with the average sales price being one per cent lower at US$549.95/t (US$498.82/st) on volumes that were some 20 per cent higher overall, with external sales staging a 32 per cent advance while internal volumes grew by four per cent just.