Texas Industries, Inc. (TXI) has released its results for the third quarter ending 28 February 2014. The company has reported a net loss of US$21.8 million compared to a loss of US$5.8 million in the corresponding period ending 28 February 2013. Adjusted EBITDA as a percentage of the quarter’s net sales came in at 11.9% compared to last year’s 9.1%. EBITDA for continuing operations for the February quarter increased slightly to US$11.7 million while EBITDA after adjusting for non-recurring items and cement plant outages that did not occur in the corresponding period in 2013 equalled US$24.8 million. These items include merger charges, a favourable litigation settlement, and maintenance outages at the Hunter and Midlothian plants.
- Cement shipments experienced growth in both the Texan and Californian markets, up by 27% and 11.8%, respectively.
- Around 74% of cement sales took place in the Texan market, compared to 71% in the same period last year.
- Cement prices increased by 5.1% y/y in Texas and 1.6% y/y in California. These rises were mitigated by product, geographical and customer mix changes.
- Shipments of stone, sand and gravel increased from 3 million t to 3.67 million t.
- Total segment sales grew from US$30.8 million to US$41.9 million. Sales of sand, stone and gravel were up by US$9.2 million. This improvement was driven by higher shipment volumes and a 16.8% rise in average prices.
- Operating profit for this sector grew from US$2.1 million to US$3.4 million.
- Segment sales increased by US$49.1 million, aided by the 42 ready mix concrete plants purchased through an asset exchange in March 2013.
- Shipments were up from 541 000 y3 to 1.085 million y3.
- Ready mix concrete unit costs fell by 7.1% y/y, mostly as a result of higher shipments.
“Construction activity continues to improve, especially in Texas, our primary market,” commented Mel Brekhus, Chief Executive Officer. “Cement, aggregate and ready mix concrete shipments in Texas increased 27%, 21% and 48% respectively compared to a year ago after adjusting for the ready mix operations we acquired last year and despite an unusually bad winter. California cement shipments increased 11.8% compared to a year ago.”
“The fact that shipment levels overcame a severe winter is indicative of the continued improvement in our markets. Positive construction trends are tightening the supply of building materials in many of our markets and should support continued price improvement,” added Brekhus.
Adapted from press release by Louise Fordham
Read the article online at: https://www.worldcement.com/the-americas/03042014/txi_february_2014_quarter_results_988/