During the first half of its financial year (to the end of November), Texas Industries increased volumes and reduced losses and is on schedule to complete commissioning of its new kiln line this spring.
The company's turnover rose by 9.1 per cent to US$342.2m. The interest charges declined by 16.7 per cent to US$15.3m and the pre-tax loss was reduced by 41.6 per cent to US$18.4m. The corporate activities incurred a loss 69.6 per cent higher at US$20.9m. Even after a reduced tax credit, the net loss was still 51.6 per cent lower at US$13.8m. The net debt at the end of November was 2.9 per cent higher than a year earlier, at US$586.9m, giving a gearing level of 85.5 per cent. Capital expenditure was reduced by 24.6 per cent to US$47.0m.
"Net sales for cement were up 20 per cent compared to the same quarter a year ago and marks the sixth consecutive quarter that net cement sales exceeded the prior year," stated Mel Brekhus, CEO "Aggregate and ready-mix net sales were up 32 and 18 per cent, respectively compared to a year ago."
The turnover in cement improved by 17.2 per cent to US$169.9m as cement shipments advanced by 16.2 per cent to 1.95Mt (2.15Mst) and the average price achieved improved by 0.8 per cent to US$102.35/t (US$78.91/st). The trading profit jumped from US$1.2m in the very poor comparative period last year to US$14.5m and was 1.45 times higher than two years ago. In the quarter to the end of November, company cement deliveries improved by 19 per cent in Texas and by 13 per cent in the California marketing area. Texas accounted for 69 per cent of the company's volume, compared with 67 per cent a year earlier. Average cement prices improved by three per cent in Texas but declined by less than one per cent in California, where the product mix had changed somewhat.
The commissioning of the second kiln at the company's central Texas plant began as scheduled and is on target to be completed this spring. "With the rebound in Texas cement consumption well into its second year, the timing of our expansion appears to be very good," Mr Brekhus noted. With a capacity of 1.4Mta, the second kiln increases TXI's total cement capacity by 26 per cent to approximately 6.7Mta.
Aggregates shipments rose by 29.5 per cent to 7Mt (7.22Mst), more than making up for last year's decline. The average price was a marginal US$0.01 lower at US$9.47/t (US$7.24/st) and the turnover from aggregates rose by 29.4 per cent to US$55.9m, or by 37.2 per cent to US$81.2 per cent including delivery charges. The trading profit jumped by 104.1 per cent to US$7.5m. Group ready-mixed concrete deliveries were 2.7 per cent lower at 0.99Mm³ (1.29m cubic yards), while the average price advanced by 6.8 per cent to US$61.96/m3 (US$81.03 per cubic foot). The trading loss jumped by 48.3 per cent to US$1.9m, reflecting the withdrawal from the Houston ready-mixed concrete market and the sale of the packed products operations in Texas.
