Sales volumes were up for Eagle Materials, which saw a record 3Q in cement at over 1.1 million t sold. Sales prices were also improved, resulting in a 39% increase in revenues at US$228.8 million. The quarterly results also reflect the acquisition of assets, including two cement plants in Missouri and Oklahoma.
Operating earnings from the cement sector increased 57% y/y to US$26 million in 3Q14. Sales volumes include the acquired assets and showed a 36% increase y/y, resulting in a 41% rise in cement revenues at US$105.6 million. Cement prices rose 5% y/y at an average US$87.01 per tonne.
The concrete and aggregates division reported a loss associated with start-up costs for a new frac sand billion and the settlement of a litigation matter in California. Eagle Materials’ gypsum wallboard and paperboard sector achieved a 51% increase in 3Q operating earnings, driven by improved volumes and prices.
Steven R. Rowley, the company’s President and CEO, said: “We are very pleased with the progress that we've made during the past year integrating our newly acquired cement, concrete and aggregates operations in Kansas City and Tulsa. We're also extremely pleased with our wallboard and paperboard businesses as they both continue to operate at very high levels of operational efficiency, and our sales opportunities continue to increase as the demand for wallboard increases during the construction recovery.” He also noted the strong demand from the energy sector for oil well cement and the continued improvement in demand this winter, despite the difficult weather conditions.
Eagle Materials has announced cement price increases for 2014. “Our US$8 per ton price increase is holding in the early implementation markets. In the majority of the markets, our price increases are scheduled to be implemented on April 1,” Mr Rowley said.
Adapted from press release by Katherine Guenioui
Read the article online at: https://www.worldcement.com/the-americas/06022014/eagle_materials_reports_increase_in_cement_operating_earnings_701/