Wet weather dampens Eagle Materials' 1Q

Wet weather dampens Eagle Materials' 1Q
04 August 2015

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.

Published under Cement News

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