Texas Industries Inc. (TXI) has announced a turnaround in profit after a strong 1Q. Cement sales grew 20% y/y in the quarter ending 31 August thanks to improved construction activity in all markets. Shipments in Texas grew to 70% of cement sales from 67% in the first quarter of the previous financial year. Selling prices also rose in Texas and California. Net income rose to US$0.4 million, up from a loss of US$2.7 million in 1Q last year, while EBITDA increased by US$23.7 million.
Higher input costs partially offset the impact of higher shipments, increasing to US$11.6 million from the previous year. These costs included depreciation expense related to the new line at the Hunter plant, repair and maintenance costs at other plants, power and fuel costs, and emission allowance credits in line with The California Global Warming Solutions Act of 2006.
CEO Mel Brekhus said, “The improved results reflect the continuing improvement in construction activity in all of our markets.” He added, “It is satisfying to start reaping the benefits from our recent strategic activities. So far, the start-up of our new kiln in central Texas has been the most successful of any I have been involved with in my career and we are realising the benefits we expected from the expansion of our vertical integration footprint last spring. We continue to focus on doing everything we can to fully participate in the market recoveries under way, including accelerating the resumption of production from the first kiln in central Texas early next calendar year.”
Adapted from press release by Katherine Guenioui
Read the article online at: https://www.worldcement.com/the-americas/03102013/txi_reports_20_increase_in_cement_sales_246/