Eagle boosted by cement and plasterboard, USA

Including its share of the jointly-owned Texas Lehigh Cement, the turnover of Eagle Materials for the financial year to the end of March advanced by 36.7 per cent to US$1009.8m. Of this total turnover, cement represented 42.5 per cent, plasterboard accounted for 38.3 per cent, aggregates and concrete for 11.4 per cent and plasterboard liner for 7.7 per cent.

The trading profit rose by 64.5 per cent to US$223.27m, helped by strong advances in both cement and plasterboard as additional volume was consolidated in cement and plasterboard volumes and prices continued to recover.

Corporate overheads were only a comparatively modest 2.7 per cent ahead at US$24.6m to give a just more than doubled (+100.2 per cent) profit before interest of US$200.1m. After a net interest charge 15.5 per cent higher at US$18.3m, the pre-tax profit again showed a substantial jump in advancing by 116.2 per cent to US$181.8m and the net attributable profit jumped by 115.2 per cent to US$124.3m.

The net debt was reduced by 69.8 per cent to US$374.8m, helped by a share issue in connection with the Lafarge deal and the year-end gearing level dropped from 77.1 per cent to 45.1 per cent this time. 

The cement turnover advanced by 42.5 per cent to US$429.3m, of which the wholly owned operations registered a 55.1 per cent jump to US$317.9m, helped by the acquisition from Lafarge, and Eagle Material's share of the Texas joint venture with HeidelbergCement rose by 15.6 per cent to US$111.4m. The 93.6 per cent advance in the trading profit to US$89.5m comprised of a more than trebling of the contribution from the wholly-owned cement operations to US$51.7m and a 16.3 per cent rise in the contribution from the associate to US$37.1m.

Cement deliveries were ahead by 39.1 per cent to 4.17Mt (4.59Mst) and were made up of an, acquisition boosted, 49.7 per cent volume increase in the subsidiaries to 3.24Mt (3.58Mst) and an 11.1 per cent advance in the volumes of the Texas joint venture to 0.92Mt (1.01Mst). Eagle Material's average cement price in the financial year was 4.6 per cent higher at US$96.24/t (US$87.311/st), with prices in the final quarter being 5.9 per cent higher at US$102.53/t (US$93.01/st).