Eagle Materials have reported its financial results for 3Q18. The company has reported record 3Q18 revenue of US$381.5 million, which is an increase of 1%. Net earnings per diluted share also increased by 17% to US$1.53 million, with approximately 740 000 shares being repurchased for US$70 million.
Revenue in heavy materials, including cement, concrete, aggregates, joint venture, and intersegment cement revenue, was US$232.4 million. This was a 1% decline from 3Q17. Similarly, the operating earnings of heavy materials decreased by 4% to US$61.6 million. It is thought that this decrease occurred primarily due to lower profits in the company’s Texas cement plant, as well as its concrete and aggregates business, both of which were affected by unusually wet weather during the quarter.
Cement revenue for 3Q18 increased by 1% to US$193.2 million. This reflects improved net sales prices, which were partially offset by lower sales volume. Average net sales for the quarter increased 1% to US$107.56/t. It is thought that net cement prices were affected by approximately US$1.50/t during the quarter, due to higher freight costs. Cement sales volume for the quarter was down 1% compared to the previous year, at 1.6 million t.
The company has also reported its 3Q18 operating earnings for cement at US$57.5 million, which is 2% lower than that reported for 3Q17. This decline has been attributed to lower sales volumes at Eagle Materials’ Texas cement facility and higher freight costs.
Furthermore, concrete and aggregates revenue for 3Q18 was US$39.2 million, which was a decrease of 9%. Operating earnings of US$4.1 million were also reported, marking a 27% decline and reflecting lower sales volumes, which were partially offset by improved pricing. Heavier rainfall than usual was experienced by the company’s primary concrete and aggregates markets during the quarter, which hampered their ability to move product.
“We are happy to have delivered strong 3Q18 results despite unusually wet weather, which limited our sales opportunities in many markets,” said Dave Powers, CEO of Eagle Materials. “Our Texas cement market experienced one of the wettest Septembers on record, while our southeastern wallboard markets dealt with the impact of Hurricane Florence. Fortunately, our employees and our facilities were unharmed and we continue to generate meaningful cashflow, which was primarily used to repurchase our shares. Looking ahead, we continue to believe the prospects for our business remain favourable, and we anticipate a good second half.”
Eagle Materials Inc. manufactures and distributes cement, aggregates, concrete, gypsum wallboard, recycled paperboard, and frac sand from over 75 facilities in the US.
Read the article online at: https://www.worldcement.com/the-americas/31102018/eagle-materials-reports-3q18-financial-results/
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