Cement sales increase by 4% for Eagle Materials in 4Q

Fiscal year 2014

US-based Eagle Materials Inc. saw its revenues increase by 40% y/y in the fiscal year ending 31 March 2014. Earnings before interest and income taxes doubled to reach US$200 million, boosted by higher sales volumes across the company’s business operations. The improved results also reflect asset acquisitions, which include two cement plants in Oklahoma and Missouri.

Eagle Materials repaid 22% (US$108 million) of its outstanding debt during the period.

4Q results

In the quarter ending 31 March 2014, both sales volumes and prices picked up, helping earnings before interest and income taxes to grow by 119%. Revenues in the quarter came in at US$189.9 million, representing a rise of 19% y/y.

The company’s gypsum wallboard and paperboard business saw operating earnings increase by 9% y/y during the period, while revenues were up 11% on the corresponding quarter in 2013.

Cement, concrete and aggregates

Operating earnings for cement grew by 94% y/y in fiscal 2014 and by 422% y/y in 4Q. Revenues, inclusive of joint ventures and intersegment sales, were up by 44% and 10% in the fiscal year and 4Q, respectively. Cement sales volumes reached 803 000 t in the fourth quarter, some 4% higher y/y.

Revenue for concrete and aggregates improved by 108% y/y in fiscal 2014. The US$115.4 million achieved reflects the impact of a recently acquired concrete and aggregates business in Kansas City and the start-up of a frac sand operation. Operating earnings came in at a loss of US$4.7 million, compared to a loss of US$5.4 million in fiscal 2013.

Adapted from press release by Louise Fordham

Read the article online at: https://www.worldcement.com/the-americas/15052014/eagle_materials_announces_positive_financial_results_203/