Texas Industries third-quarter net loss widens

Texas Industries third-quarter net loss widens
03 April 2014

During the first nine months to the end of February, Texas Industries Inc saw turnover rise by 34.4 per cent to US$649.8m and the EBITDA advanced by 46 per cent to US$69m. After a more than doubling of the net interest charge from US$22.5m to US$52.2m, a US$2.8m merger charge and a 95.9 per cent jump in other net costs, the pre-tax loss rose by 47.8 per cent to US$41.7m and the net loss jumped by 98.9 per cent to US$39m. The net debt at the end of February was 2.8 per cent lower at US$611m, giving a gearing level of 83.5 per cent. With the completion of the investment in the Hunter cement works in Texas, capital expenditure in the period was reduced by 55.4 per cent to US$35.3m.

The cement turnover advanced by 18.1 per cent to US$292.6m as, with cement deliveries increasing by 18 per cent to 3.3Mt (3.64Mst) and the average price was 2.1 per cent higher at US$88.62/t (US$80.40/st). The commissioning last spring of a second kiln at the Hunter cement works added a capacity of 1.27Mta (1.4Mst). The increased capacity led to higher operating costs and the trading profit declined by 33.9 per cent to US$16.1m. In the third quarter, cement deliveries rose by 27 per cent in Texas and by 11.8 per cent in the California marketing area, with Texas accounting for some 74 per cent of group shipments. The average cement price improved by 5.1 per cent in Texas and by 1.6 per cent in California, with unfavourable weather in Texas depressing delivery volumes.

Aggregates shipments rose by 11.2 per cent to 10.85Mt (11.96Mst) and the average price improved by 13.9 per cent to US$9.10/t (US$8.26/st) with the turnover from aggregates advancing by 19.3 per cent to US$133.6m. The trading profit advanced by 59.5 per cent to US$15.4m. Group ready-mixed concrete deliveries were boosted by th4e addition of 42 batching plants in March of last year and jumped by 79.9 per cent to 2.52Mm³ and the average price improved by 5.9 per cent and the previous year's US$8.8m trading loss was turned into a US$9.46m trading profit on a turnover 90.8 per cent ahead at US$285.4m.

Published under Cement News

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