Eagle Materials Inc. has released its results for the quarter ending 30 September 2014, referred to as its second quarter of fiscal 2015. Sales volumes and prices improved across the majority of its businesses, helping earnings before interest and income taxes to rise by 24% y/y to US$78.5 million. The US-based company’s quarterly revenues reached a record US$284.8 million, an increase of 13% y/y.
During the quarter, cement sales volumes grew by 3% y/y to total a record 1.5 million t. Cement revenues were up 10% y/y to US$145.9 million, including joint venture and intersegment revenues. Operating earnings were also higher than in the corresponding quarter last year, rising by 19% to US$38.5 million. This increase has been attributed to record cement sales volumes and a 6% rise in average net cement sales prices. Although underlying demand continues to grow, Eagle Materials notes that shipment timings were affected by rail congestion.
The concrete and aggregates segment achieved a 215% y/y increase in operating earnings, which came in at US$3 million, boosted by better concrete sales volumes and concrete and aggregates pricing.
The gypsum wallboard and paperboard division reported revenues of US$132.9 million, up 11% y/y, and operating earnings improved by 22% y/y to US$45 million.
The oil and gas proppants segment saw revenues reach US$10.4 million during the quarter and operating earnings came in at US$0.7 million. On 17 October, Eagle Materials announced that it had entered into a definitive agreement to acquire CRS Proppants LLC and its subsidiaries, including Great Northern Sand LLC. The purchase is expected to double the company’s frac-sand production capacity and build on its frac-sand reserves. The transaction is due to close in Eagle Material’s fiscal third quarter, subject to the relevant regulatory approvals.
Adapted from press release by Louise Fordham
Read the article online at: https://www.worldcement.com/the-americas/30102014/eagle-materials-achieves-record-cement-sales-volumes-in-2q-fiscal-2015-770/