Eagle Materials Inc. today reported financial results for the second quarter of fiscal 2006 ended September 30, 2005 and raised its annual earnings guidance.
For the quarter ended September 30, 2005, revenues and net earnings were $222 million and $43 million, respectively. Revenues increased 36% over the prior year second quarter and net earnings increased 44% over the same period last year. Diluted earnings per share for the second quarter of fiscal 2006 were $2.41 compared with $1.62 in the same period a year ago, a 49% increase.
Operating earnings from Cement increased 35% to $23 million for the second quarter this year from $17 million for the same quarter last year. The earnings gain was due primarily to a record high average net sales price, record high sales volumes and the positive impact of the Illinois Cement acquisition. Cement revenues for the second quarter totaled $78 million, 38% greater than the $56 million for the same quarter a year ago. $9 million of the revenue gain is attributable to the acquisition of our partner’s 50% interest in Illinois Cement Company, which closed in the fourth quarter of fiscal 2005. Cement sales volume for the second quarter totaled 887,000 tons, 20% above the 742,000 tons for the same quarter last year. To meet these strong market requirements, Eagle increased its lower margin purchased cement sales volumes to approximately 260,000 tons for the quarter.
Revenues from Concrete and Aggregates were $25 million for this year’s second quarter, 16% greater than the $21 million for the second quarter a year ago. Concrete and Aggregates reported a $3.2 million operating profit for this year’s second quarter, up 30% from the $2.5 million operating profit for the same quarter last year, due to increased pricing in both of our markets and increased concrete volumes.
Concrete sales volume increased 5% for the second quarter this year to 240,000 cubic yards from 229,000 cubic yards for the same quarter last year. Our Concrete quarterly average net sales price of $62 per cubic yard for the second quarter of fiscal 2006 was a record and was 15% higher than the $54 per cubic yard for the second quarter a year ago. Our Aggregates operation reported sales volume of 1.6 million tons for the current quarter, 3% less than the 1.7 million tons reported in the second quarter last year. Our Aggregates quarterly average net sales price was a record high $5.89 during the second quarter and was 15% above last year’s second quarter Aggregates average net sales price.
