Eagle improves in both cement & plasterboard, USA

In the first quarter of its financial year to 31 March 2012, Eagle Materials’ turnover, including its share of the Texas Lehigh cement joint venture, rose by 25.9 per cent to US$177.7m. The pre-tax profit rose 19-fold from US$1m to US$19.9m, after charging net interest costs that were 17.8 per cent lower at US$3.8m. Net attributable profit jumped from US$0.8m to US$14m and the net debt was 12.5 per cent lower at US$290.0m to give a gearing level of 64.5 per cent, down from 72.3 per cent a year earlier.

Cement turnover increased by 27 per cent to US$75.5m, as the wholly-owned operations reported a 37.7 per cent increase to US$51.8m, while the company’s share of the Texas Lehigh joint venture increased by a more modest 10.8 per cent to US$23.7m. As a result, the trading profit improved by 12.3 per cent to US$9.9m, with the profitability being held back by the seasonal maintenance costs and some older contracts taken at lower prices. Consolidated cement deliveries were 25.8 per cent higher at 0.77Mt (0.85Mst). Volumes in the wholly-owned operations jumped by 38.3 per cent, but rose by a very modest 0.9 per cent in the Buda joint venture. The average cement price was 0.2 per cent lower at US$89.35 /t (US$81.06/st).

Turnover from aggregates and ready-mixed concrete advanced by 7.7 per cent to US$12.7m and at the trading level the US$0.24m loss was turned into a US$0.20m profit. Aggregates shipments recovered by 6.5 per cent to 0.59Mt (0.65Mst) and the average price was 1.7 per cent higher at US$6.59/t. The ready-mixed concrete volume improved by 0.7 per cent to 0.10Mm³, while the average price improved by 7.0 per cent to US$85.40/m3.

Turnover in the plasterboard increased by 36.8 per cent to US$70.2m and that in paperboard by a more modest 2.2 per cent to US$19.4m with the combined trading profit jumping from US$1.3m to US$19.3m as the plasterboard operations went from a loss to a US$14.0m profit. Plasterboard volumes rose by 10.9 per cent and prices jumped by 31.8 per cent. In paperboard, the average sales price was 0.5 per cent lower at US$554.33 per tonne (US$502.89 per short ton) on volumes that were some 5 per cent higher than a year earlier.