Eagle Materials improves profit by 44 per cent

Including its share of the jointly-owned Texas Lehigh Cement, the turnover of Eagle Materials for the first nine months to 31 December 2016 increased by 3.7 per cent to US$1.01bn. The trading profit before corporate overheads showed a strong recovery and rose by 37.5 per cent to US$283.9m, of which cement contributed 44.9 per cent compared with 56.2 per cent a year earlier.

The group trading profit was ahead by 42.5 per cent to US$256.1m. After a net interest charge 22.8 per cent higher at US$15.8m, the pretax profit advanced by 44 per cent to US$240.3m and the net profit emerged 42.8 per cent ahead at US$162m. Shareholders' funds at the end of December were 10.9 per cent higher than a year earlier at US$1.16bn.

Turnover in cement improved by 4.8 per cent to US$437.2m. Of this, the wholly-owned operations saw turnover advance by 7.4 per cent to US$359.5m, while the group's share of the Texas joint venture with HeidelbergCement declined by 5.8 per cent to US$77.8m. The trading profit improved by 10 per cent to US$127.6m. Cement deliveries attributable to the group was off  by 0.2 per cent to 3.53Mt (3.89Mst), with volumes at the Buda joint venture recovering by 4.5 per cent, while the subsidiaries sold 1.1 per cent less. The average cement price achieved over the first nine months improved by three per cent to US$110.72 (US$100.45/st), with the price for the third quarter being 3.9 per cent ahead at US$111.20 (US$100.88/st).

Aggregates and ready-mixed concrete contributed a turnover 18.3 per cent higher at US$113.9m and the trading profit advanced by 79.1 per cent to US$13.1m. The aggregates volume advanced by 29.4 per cent to 2.61Mt (2.88Mst) and the average price was 2.5 per cent ahead at US$9.36/t (US$8.49/st). Ready-mixed concrete deliveries rose by 13.2 per cent to 0.80Mm³ and the average price improved by 1.7 per cent to US$123.06/m³.

The plasterboard and liner operations turnover improved by 7.2 per cent to US$440.4m and the trading profit did improve by nine per cent to US$152.9m, as the plasterboard profit improved by 3.3 per cent to US122.1m. Plasterboard shipments in the nine months improved by 6.7 per cent, with the third quarter showing a 13.7 per cent advance, but the average price eased by 2.97 per cent.