Eagle Materials reports positive quarterly results

Texas-based cement producer Eagle Materials has reported a significant improvement in 2Q14 results, with cement sales volumes achieving a quarterly record of 1.4 million t. The company’s cement business reported an 86% y/y increase in operating earnings at US$32.4 million, attributed to increased sales volumes and improved cement prices. Cement revenues totalled US$133.2 million, 70% up on 2Q13. The improvement can be attributed in part to the acquisition of assets, including two cement plants in Missouri and Oklahoma, which increased sales volumes. In addition, average net sales price increased 3% y/y to US$85.34/t.

Eagle Materials’ Gypsum Wallboard and Paperboard division posted a 52% increase in 2Q operating earnings at US$36.8 million, thanks largely to improved gypsum wallboard net sales prices. Revenues also increased, reflecting higher wallboard sales prices and improved sales volumes of both gypsum wallboard and paperboard.

Eagle Materials announced it would acquire Lafarge’s Sugar Creek plant in Missouri and Tulsa plant in Oklahoma last year. The plants have a combined cement production capacity of 1.6 million t and were part of a bigger transaction that included two aggregate quarries, six distribution terminals, eight ready-mix concrete plants and the flyash business.

Adapted from press release by Katherine Guenioui