Eagle Materials has released its results for 1Q fiscal 2015, which ended on 30 June 2014. During the period, the US-based group achieved record 1Q revenues, which increased by 17% y/y to reach US$266.3 million. Earnings before interest and income taxes came in at US$59.8 million, up 21% y/y, boosted by higher sales volumes and prices.
Cement sales volumes improved by 4% y/y to reach 1.3 million t, with the average net sales price rising by 5% y/y. This helped operating earnings for cement to grow to US$20.5 million, up 8% y/y. However, the increase in volumes and prices was partially offset by annual maintenance outages costs at the Kansas City and Tulsa cement plants, which totalled US$5.2 million. Cement revenues increased by 9% y/y to US$127.9 million. This includes intersegment and joint venture revenues (the company operates the Texas Lehigh Cement Company LP as a 50:50 joint venture).
According to Eagle Materials, cement demand is rising but 1Q shipments were hit by rail congestion caused by poor winter weather conditions.
Meanwhile, Concrete and Aggregates experienced 34% growth in operating earnings (US$1.4 million), aided by improved pricing as well as greater concrete sales volumes.
Eagle Materials’ Gypsum and Paperboard Business saw operating earnings rise by 27% y/y to US$45 million, while revenues during the first quarter grew by 18% y/y to US$136.1 million.
Its Oil and Gas Proppants Business (frac-sand) reported revenues of US$11.2 million and an operating loss of US$0.6 million. It should be noted that, previous to fiscal 2015, the results of this business segment were included in the Concrete and Aggregates Business results. The company has now received the final permit needed for it to begin operations at its frac-sand mine in Utica, Illinois. The first shipments of raw sand from the mine to Eagle Materials’ 1.5 million t processing facility at Corpus Christi are scheduled for 3Q of fiscal 2015.
Adapted from press release by Louise Fordham
Read the article online at: https://www.worldcement.com/the-americas/23072014/eagle-materials-releases-1q-fiscal-2015-financial-results-159/