Eagle Materials improves cement profit

Including its share of the jointly-owned Texas Lehigh Cement, the turnover of Eagle Materials for the first nine months to 31  December 2015 increased by 3.5 per cent to US$973.9m.

The trading profit before corporate overheads declined by 16.4 per cent to US$206.4m, of which cement contributed 56.2 per cent compared with 39.1 per cent a year earlier. The group trading profit was off by 18.4 per cent to US$179.8m. After a net interest charge 6.4 per cent higher at US$12.8, the pretax profit fell by 19.8 per cent to US$166.9m and the net profit emerged 19 per cent lower at US$113.4m. Shareholders' funds at the end of December, however, were 7.8 per cent higher than a year earlier at US$1,049.3m and the gearing level emerged at 52.2 per cent compared with 54.7 per cent a year prior.

Turnover in cement improved by seven per cent to US$417.3m. Of this, the wholly-owned operations saw turnover advance by 14.9 per cent to US$334.8m, while the group's share of the Texas joint venture with HeidelbergCement declined by 16.3 per cent to US$82.4m. The trading profit did improve by 20.2 per cent to US$116.1m. Cement deliveries attributable to the group dropped by 1.8 per cent to 3.34Mt (3.9Mst), with volumes at the Buda joint venture falling by 21 per cent, while the subsidiaries sold 3.3 per cent more. The average cement price achieved over the first nine months improved by 6.7 per cent to US$107.52 (US$97.54/st), with the price for the third quarter being 3.6 per cent ahead at US$107.03 (US$97.10/st).

Aggregates and ready-mixed concrete contributed a turnover 13.9 per cent higher at US$96.3m and the trading profit advanced by 22.7 per cent to US$7.3m. The aggregates volume, however, declined by 6.7 per cent to 2.02Mt (2.22Mst), but the average price was 9.8 per cent higher at US$9.13/t (US$8.28/st). Ready-mixed concrete deliveries rose by 9.4 per cent to 0.71Mm³ and the average price improved by 5.81 to US$122.40/m3.

The plasterboard and liner operations turnover eased by 0.6 per cent to US$410.7m, but the trading profit did improve by 0.9 per cent to US$140.3m, as the plasterboard profit advanced by 3.3 per cent to US118.2m. Plasterboard shipments in the nine months were edged ahead by one per cent, though it fell by 6.9 per cent in the third quarter, and the average price eased by 0.7 per cent.