Eagle Materials records positive FY18

Eagle Materials has reported its FY18 and 4QFY18 results, which reflect an all-round positive performance. In the 2018 fiscal year, revenue increased 14 per cent YoY to US$1.4bn and its after-tax margin finished at 19 per cent. 

The company saw a two per cent rise in revenue for the final quarter of FY18, resulting in a record amount of US$284.7m. This comes despite a US$6m pretax charge related to the settlement by American Gypsum of the antitrust lawsuit brought by a group of homebuilders, according to a press release. The fourth-quarter results were also affected by US$4m of personnel-related expenses.

"We have invested more than US$1.5bn so far this cycle to profitably grow our businesses and create shareholder value. As we look ahead, our strong balance sheet and anticipated cash flows, which have been enhanced by tax reform, position us to continue to execute on value-creation opportunities," said Dave Powers, president and CEO, Eagle Materials.

Cement sector
Overall revenue for the Heavy Materials sector, including cement, concrete and aggregates, increased 12 per cent YoY to US$807.4m in the FY18.

The revenue from cement, including joint venture and intersegment revenue, rose 15 per cent to US$651.8m for the period. Similarly, operating earnings surged 17 per cent to US$179.2m in a record-setting year, on the back of the financial results of the newly-acquired facility in Fairborn, Ohio, its related assets and improved pricing.

Operating earnings for the cement sector fell five per cent YoY to US$24.7m in the 4QFY18, primarily due to persistently-bad weather in many key markets.