Eagle Materials reports record quarterly cement earnings and volumes
Eagle Materials Inc posted yesterday record quarterly Cement and Paperboard division operating earnings as demand for the company's building materials and construction products remained strong in each of its regional markets
“Eagle's construction products and building materials businesses continued to perform exceptionally well during the second quarter, with the Cement and Paperboard businesses reporting record quarterly operating earnings and our wallboard and concrete and aggregates businesses reporting YoY improvements." the company said in a statement.
During the quarter, the company reported a quarterly revenue high of US$329m, up 16 per cent YoY. Net earnings for the quarter were down 41 per cent to US$29.8m. Net earnings were reduced by US$26.2m (after-tax) of Non-Routine Items related to our Oil and Gas Proppants Segment.
Cement, Concrete and Aggregates
Operating earnings from the Cement segment for the second quarter were a record US$48.6m, and 26 per cent higher than the same quarter a year ago. The earnings increase was driven primarily by an eight per cent increase in average net cement sales prices and record quarterly cement sales volumes to 1.5Mt (+1 per cent YoY).
Cement revenues for the second quarter, including joint venture and intersegment revenues, totaled US$164.8m, 13 per cent greater than the same quarter last year. Eagle's average cement price for the quarter under review was US$97.21/t, eight per cent higher than the same quarter last year.
Concrete and Aggregates reported operating earnings of US$3.9m for the second quarter, a 30 per cent improvement from the same quarter a year ago, reflecting improved concrete and aggregates pricing along with improved concrete sales volumes.
During the quarter, the company completed the acquisition of the Skyway slag cement facility from Holcim (US) Inc.
Gypsum Wallboard and Paperboard
The Gypsum Wallboard and Paperboard division reported second quarter operating earnings of US$48.1m, up seven per cent from the same quarter last year. Improved sales volumes from this segment were the primary drivers of the quarterly earnings increase, the company stated.
Gypsum Wallboard and Paperboard revenues for the second quarter totaled US$143.3m, an eight per cent increase from the same quarter a year ago. The revenue increase reflects higher Gypsum Wallboard and Paperboard sales volumes slightly offset by a one per cent decline in the average Gypsum Wallboard net sales price. The average Gypsum Wallboard net sales price this quarter was US$157.88/MSF, one per cent less than the same quarter a year ago. Gypsum Wallboard sales volume for the quarter of 619Mft2 represents a nine per cent increase from the same quarter last year.
Paperboard sales volumes were a second quarter record 75,000t, seven higher than the same quarter a year ago. The average Paperboard net sales price this quarter was US$505.12/t, one per cent higher than the same quarter a year ago.
