Eagle Materials trading profit almost trebles, USA

Eagle Materials trading profit almost trebles, USA
07 February 2013

Eagle Materials' turnover, including its share of the Texan cement joint venture with HeidelbergCement, rose by 22.7 per cent to US$366.32m for the six months to the end of September and the trading profit virtually trebled to US$53.35m.

After a net interest 20 per cent lower at US$7.31m, the pre-tax profit jumped by 424.5 per cent to US$46.04m. Net debt of US$243.9m at the end of September represented 48.6 per cent of shareholders' funds compared with 59.4 per cent a year earlier. Eagle Materials paying Lafarge US$446m for two integrated cement works, two quarries, eight batching plants, a fly ash business and certain other downstream assets, a deal that should be concluded within the next six weeks. Eagle Materials has raised US$160m from a share issue of 3.45m new shares at US$46.50.

Turnover from cement increased by 17.7 per cent to US$153.5m. Sales by the wholly-owned operations rose by 22.2 per cent to US$105.6m, but the group's share of the Texas Lehigh joint venture was just 8.6 per cent higher at US$47.65m. The trading profit advanced by 14.3 per cent to US$27.3m, with the joint venture in Texas increasing its contribution by 13.7 per cent and the wholly-owned businesses recorded a 15 per cent advance to US$12.1m. Group cement deliveries were 14.8 per cent higher at 1.55Mt (1.71Mst), with the Buda joint venture seeing volumes easing by 0.4 per cent but the wholly-owned tonnage rose by 21.5 per cent to 1.14Mt. The average cement price was 0.8 per cent higher at US$74.32/t (US$81.92/st).

Turnover from aggregates and ready-mixed concrete improved by 4.9 per cent to US$26.7m and the trading loss was reduced by 15.7 per cent to US$0.16m. Aggregates shipments were 5.7 per cent higher at 1.33Mt (1.46Mst), and the average price improved by one per cent to US$6.61/t. Ready-mixed concrete deliveries were 0.7 per cent lower at 0.21Mm³, but the average price was 5.3 per cent higher at US$50.52/m3.

Turnover in the plasterboard and related activities rose by 30.6 per cent to US$182.2m and the trading profit jumped from US$2.8m to US$43.5m, as the US$4.3m trading loss in plasterboard a year ago went to a US$30.5m profit. Plasterboard deliveries increased by 17.4 per cent to 88.9Mm², and the average plasterboard price jumped by 30.8 per cent.

Published under Cement News