Eagle Materials has reported continued growth in sales volumes and earnings in the second quarter as revenues rise 22 per cent to US$164.7m.
Second quarter sales volumes improved across all major business lines and wallboard net sales prices increased 30 per cent as compared to the prior year's second quarter. Improved second quarter operating cash flow was used to fund capital expenditures, pay dividends and reduce debt which further strengthened our financial position. Eagle ended the quarter with a net debt-to-capitalization ratio of 29 per cent.
Operating earnings from cement for the second quarter were US$17.4m, a 15 per cent increase from the same quarter a year ago. Cement revenues for the quarter, including joint venture and intersegment revenues, totalled US$78.5m, eight per cent greater than the same quarter last year. Cement sales volumes for the quarter were 864,000t, six per cent above the same quarter a year ago. The average net sales price this quarter was US$82.77/t, two per cent higher than the same quarter last year.
Concrete and Aggregates reported a US$0.4m operating loss for the second quarter, down from a slight operating profit for the same quarter a year ago, primarily due to lower concrete sales volumes and lower aggregates sales volumes in Northern California.
Gypsum Wallboard and Paperboard's second quarter operating earnings of US$24.2m were up 1,513 per cent compared to the same quarter last year. Higher wallboard average net sales prices, higher gypsum wallboard and gypsum paperboard sales volumes and lower recycled paper input costs were the primary driver of the quarterly earnings increase.
Gypsum Wallboard and Paperboard revenues for the second quarter totaled US$96.5m, a 33 per cent increase from the same quarter a year ago. The revenue increase reflects primarily higher wallboard average net sales prices and sales volumes.
As previously announced on September 26, 2012, Eagle entered into a definitive agreement with Lafarge North America to purchase Lafarge's Sugar Creek, Missouri and Tulsa, Oklahoma cement plants, as well as related assets, which include six distribution terminals, two aggregates quarries, eight ready-mix concrete plants and a fly ash business.
