Florida Rock Industries, Inc announced record net income of US$33,050,000 for the third quarter of fiscal year 2004 versus $22,971,000 share for the same quarter of fiscal 2003. Included in third quarter net income was $1,589,000 or 3.6 cents per diluted share of after tax gain from the sale for $6,500,000 of the Company’s calcium grinding facilities at Frederick, Maryland.
Consolidated total sales for the quarter increased 27% to $251,649,000 from $198,113,000 in the same quarter last year. Gross profit increased approximately 36 per cent to US$74,812,000 compared to $54,929,000 in the same quarter last year.
Third quarter operating profit increased 50 cent to US$51,153,000 versus US$34,117,000 in the third quarter of fiscal 2003.
During the third quarter, demand for cement in the Florida market significantly exceeded available supply. While the Company’s supply of cement was down only slightly from the prior quarter, demand from the Company’s customers (including the Company’s concrete operations in Florida and Georgia) exceeded available inventories resulting in restrictive allocations of product to the Company’s concrete operations as well as to the Company’s outside cement customers.
Commenting on the third quarter results, President and CEO John Baker stated that:
"Our markets continued to show strong demand throughout the third quarter with June showing even greater strength than April and May. The scheduled maintenance shutdown at our Newberry cement plant was successfully completed early in May and the plant performed at capacity for the balance of the quarter. Our people deserve real credit for their continued focus on operational improvements that enable these good results."
Outlook: The product demand levels experienced in our markets during our first three quarters appear to be sustainable for the coming fourth quarter. The July pricing improvements effected in our Florida cement, stone and concrete operations have the potential to improve our future performance subject to the vagaries of hurricane season and other negative weather conditions typical of late summer and early fall.
