Texas Industries, Inc. (TXI) has released its financial report for the quarter ending 30 November 2013. EBITDA from continuing operations reached US$19.5 million, an improvement on the US$10.6 million in the same quarter in 2012. The quarter ended in a net loss of US$17.6 million, down from a net loss of US$11.1 million in the quarter ending 30 November 2012. According to TXI, improvements in demand and pricing were offset by unfavourable weather conditions in Texas, environmental compliance costs, as well refurbishment and startup costs at the Hunter plant.
“We were able to restart the original kiln in central Texas two months ahead of our original schedule,” commented Mel Brekhus, Chief Executive Officer. “The ability to supply an additional 900 000 tpa from this kiln will increase our ability to take advantage of increased demand for cement in south and central Texas. This additional production capability and improving operational efficiencies associated with the new second kiln that started production last year places us in a strong position as we enter the spring shipping season. Further reflecting the increasing improvement in construction, we have announced cement price increases of US$8/t in Texas for April 2014 and US$3.50/t in California for January 2014 and US$5/t in April 2014.”
Cement operating profit for the period fell from US$6.1 million in 2012 to US$3.7 million in the quarter in 2013. However, cement sales grew by US$12.3 million and shipments were up 14.7% y/y and 14.4% y/y in Texas and California, respectively. Average cement prices were down 0.7% y/y in the Californian market but increased by 0.8% y/y in Texas.
Sales of aggregates (stone, sand and gravel) reached US$31.9 million in the quarter, an increase on the US$27.7 million achieved in the corresponding quarter in 2012. Although shipments were negatively impacted by the poor weather in Texas, they did rise by 0.8% y/y to 3.84 million t. Operating profit increased from US$3.5 million in 2012 to US$5.4 million in the three-month period ending 30 November 2013.
Conrete operating profit registered a loss in the quarter, coming in at -US$1.5 million. In the same period in 2012, a loss of US$2.6 million was reported. Sales of ready-mix concrete increased from US$52.9 million to US$93.1 million. The acquisition of 42 ready-mix concrete plants in March 2013 contributed to this improvement and also boosted shipments by 66% y/y. Total shipments reached more than 1 million yd3 in the quarter, up from 643 000 yd3.
Adapted from press release by Louise Fordham
Read the article online at: https://www.worldcement.com/the-americas/09012014/txi_financial_results_november_2013_576/