Eagle Materials Inc 2Q fiscal 2017 cement volumes rise
Eagle Materials Inc reported that in its financial results for the 2Q fiscal 2017, ended 30 September 2017, cement volumes were up 12 per cent, including the Fairborn business, while the Texas Lehigh cement joint venture volumes were down six per cent. The company also benefitted from cement prices being up seven per cent overall.
Second-quarter EBITDA increased five per cent, reflecting the financial results of the recently-acquired cement plant in Fairborn, Ohio, and related assets (the Fairborn Business) and improved net sales prices across most businesses, the company said in a statement.
Cement revenues for the second quarter, including joint venture and intersegment revenues, totalled US$191.7m, which was 15 per cent higher than the same quarter last year. The average net sales price for this quarter was US$106.96/t.
Total cement sales volumes for the quarter were 1.6Mt, nine per cent higher than the same quarter a year ago. Like-for-like average net cement sales prices increased five per cent and sales volumes declined five per cent, respectively, versus the 2Q fiscal 2017 (comparison excludes cement sales from the Fairborn Business since its acquisition date).
Cement shipments during the quarter were negatively impacted by wet weather across the Midwest markets and the Texas cement shipments were impacted by the hurricane flooding that occurred along the Texas Gulf Coast, a company statement said.
"Eagle Materials' quarterly results reflect hurricane and other weather-related operational and demand interruptions. We were more fortunate than many as our employees remained safe and our operations incurred no damage. Eagle is poised to serve our customers' additional needs as they meet the challenges of rebuilding over the coming quarters," commented Dave Powers, president and CEO.
Cement, concrete and aggregates
During the quarter, the Nevada cement plant successfully completed the installation of certain pollution control equipment in in line with the company's plans to burn solid-waste fuels. To complete the project the plant reduced production output, which negatively affected the absorption of operating costs at the cement plant during the quarter. The impact to the quarter was approximately US$2m, The plant is currently up and operational.
Operating earnings from the cement business for the second quarter were a record US$58.8m and 16 per cent higher than the same quarter a year ago. The earnings improvement was driven primarily by earnings from the Fairborn Business and improved average net cement sales prices offset by lower sales volumes from Eagle Materials' legacy facilities and the project at the Nevada cement plant.
Concrete and aggregates reported revenues for the second quarter of US$43m, an increase of 11 per cent. Second-quarter operating earnings were US$5.6m, a 17 per cent improvement from the same quarter a year ago, reflecting improved concrete and aggregates sales volumes and net sales prices.
Gypsum wallboard and paperboard revenues for the second quarter totalled US$150.3m, which were one per cent less than the same quarter a year ago.
