Eagle Materials net profit rises by 37.8%

Including its share of the jointly-owned Texas Lehigh Cement, the turnover of Eagle Materials for the first nine months to 31 December, rose by 19.1 per cent to US$941.2m.

The trading profit before corporate overheads increased by 33.7 per cent to US$246.9m, of which cement contributed 39.1 per cent. The trading profit improved by 32.5 per cent to US$220.3m. After a net interest charge 15.3 per cent lower at US$12.1, the pre-tax profit advanced by 37 per cent to US$208.2m and the net profit emerged 37.8 per cent higher at US$140.1m.

Shareholders' funds at the end of December were 20.8 per cent higher than a year earlier at US$973.0m and the gearing level emerged at 51.8 per cent a year earlier to 47.8 per cent. 

Cement division
Turnover in cement rose by 11.8 per cent to US$390.1m. Of this, the wholly-owned operations saw turnover advance by 9.6 per cent to US$291.5m, while the group's share of the Texas joint venture with HeidelbergCement improved by 20.3 per cent to US$98.6m. The trading margin improved from 22.2 per cent to 33.1 per cent and the trading profit rose by 24.6 per cent to US$96.5m.

Cement deliveries attributable to the group improved by 4.9 per cent to 3.6Mt (3.97Mst), with volumes at the Buda joint venture improving by 11.2 per cent, while the subsidiaries sold 3.2 per cent more. The average cement price achieved over the first nine months improved by 6.2 per cent to US$100.78 (US$91.43/st), with the price for the third quarter being 7.8 per cent ahead at US$103.35 (US$93.76/st). 

Aggregates and ready-mixed concrete
Aggregates and ready-mixed concrete contributed a turnover 10.3 per cent higher at US$84.5m and the trading profit jumped from US$0.4m to US$6m. The aggregates volume declined by nine per cent to 2.1Mt (2.37Mst) but the average price was 12.5 per cent higher at US$8.31/t (US$7.54/st). Ready-mixed concrete deliveries rose by 6.1 per cent to 0.59Mm³ and the average price improved by 5.8 per cent to US$113.50/m3.

The plasterboard and liner operations improved turnover by 27 per cent to US$413.3m and the trading profit also advanced by same percentage to US$139.1m, as the plasterboard profit increased by 26.8 per cent to US114.4m. Plasterboard shipments in the nine months were up by 4.6 per cent and the average price rose by 10.9 per cent.