Texas Industries Inc reported that its fourth-quarter net income declined to US$44.14m as the prior-year results included a higher gain from asset sales. However, the company benefitted from continuing recovery in major markets and from the commissioning of new cement capacity and ready-mix acquisitions in Texas.
Net income declined to US$44.14m from US$60.21m in the same quarter last year. The latest results included income net of tax from discontinued operations of US$28.5m. The company recognised a pre-tax gain of US$41.1m on the disposition of expanded shale and clay operations. Prior-year results included pre-tax gains of US$60.1m from asset sales and a joint venture agreement as well as income net of tax from discontinued operations of US$3.1m.
According to the company, fourth quarter benefited from the continuing recovery of construction activity in major markets. "The fourth quarter certainly benefited from the continuing recovery of construction activity in our major markets," stated Mel Brekhus, CEO. "Shipments of all products reflect double digit percentage increases compared to a year ago."
"We also achieved two strategic milestones during the quarter," added Brekhus. "The commissioning of our 1.4Mta cement kiln at our central Texas plant was finished late in the quarter and we completed the acquisition of 42 ready-mix plants in east Texas. Both events significantly improve our ability to take advantage of the strong recovery underway in Texas."
Total cement segment sales for the three-month period ended May 31, 2013 increased US$25.3m from the prior fiscal period on higher shipments and prices. Cement sales increased US$27.4m. The Texas market area accounted for approximately 72 per cent of cement sales in the current period compared to 70 per cent of cement sales in the prior year period. Cement shipments increased 34 per cent in the Texas market area and increased 29 per cent in California compared to the prior fiscal period. Average prices increased five per cent in Texas and remained comparable in California compared to the previous fiscal.
In Aggregate Operations, total stone, sand and gravel sales rose 26 per cent to US$32.13m, benefiting from higher shipments and increased average prices.
Total ready-mix concrete sales amounted to US$82.08m in the quarter, up 86 per cent from last year. Around half of the increase in shipments was attributable to the acquisition of 42 ready-mix plants during the quarter.
