Including its share of the jointly-owned Texas Lehigh Cement, the turnover of Eagle Materials for the financial year to the end of March 2017 improved by 11.7 per cent to US$1317.1m. Of this total turnover, the cement segment accounted for the largest share (41.8 per cent), followed by plasterboard (36 per cent), aggregates and concrete (11.6 per cent), plasterboard liner (eight per cent) and oil and gas (2.6 per cent). EBITDA emerged at US$403.8m, an increase of 22.9 per cent.

The trading profit, having declined by 9.7 per cent in the previous year, advanced by 30.6 per cent to US$356.57m. Corporate overheads were reduced by 8.7 per cent to US$33.94m to give a profit before interest 34.5 per cent higher at US$317.15m. After a net interest charge 36.5 per cent higher at US$22.63m, the pretax profit advanced by 34.3 per cent to US$294.52m and the net attributable profit increased by 29.9 per cent to US$198.22m. Net debt declined by 34.9 per cent to US$373.7m and the year-end gearing came down rose from 56.8 per cent to 31.1 per cent, having stood at 77.1 per cent three years ago.

Performance by division

Cement
Cement turnover improved by seven per cent to US$550.5m, of which the wholly-owned operations registered a 9.2 per cent increase to US$444.6m while Eagle Material's share of the Texas joint venture with HeidelbergCement eased by 1.4 per cent to US$105.9m. The 11.4 per cent improvement in the trading profit to US$153.5m comprised of a 12.5 per cent increase in the contribution from the wholly-owned cement operations to US$111.1m and an 8.5 per cent advance in the contribution from the associate to US$42.4m.

Cement deliveries were 1.9 per cent higher at 4.42Mt (4.87Mst) and were made up of an 0.8 per cent volume improvement in the subsidiaries to 3.57Mt (3.93Mst) and a 7.1 per cent advance in the volumes of the Texas joint venture to 0.85Mt (0.94Mst).

Eagle Material's average cement price in the financial year was 3.6 per cent higher at US$117.03/t (US$106.17/st), with prices in the final quarter were 5.7 per cent higher at US$117.03/t (US$106.17/st). The cement volume in the final quarter was 11.5 per cent higher than in the year before.

Aggregates and ready-mixed concrete
Turnover from aggregates and ready-mixed concrete advanced by 20.6 per cent to US$153.3m and the trading profit jumped by 84.3 per cent to US$18.1m.

Shipments of aggregates increased by 21.3 per cent to 3.31Mt (3.65Mst) while the average price improved by 4.5 per cent to US$9.53/t (US$8.65/st). Deliveries of ready-mixed concrete rose by 4.4 per cent to 0.96Mm³ and the average price advanced by 4.4 per cent to US$126.61/m3, with prices in the final quarter being 12.8 per cent ahead. Losses in the oil and gas activities were reduced from US$68.5m to US$14.6m.

Plasterboard
The plasterboard turnover improved by 2.6 per cent to US$473.7m and the trading profit edged ahead by 0.3 per cent to US$159.9m. The average selling price eased by 1.3 per cent while the plasterboard volume improved by 3.7 per cent and the selling price in the final quarter was 3.8 per cent higher than in the comparative period of the previous year.

Turnover in plasterboard liner was ahead by 16.4 per cent to US$105m and the trading profit improved by 16.9 per cent to US$37.6m, with the internal sales tonnage improving by four per cent while external deliveries were 14 per cent ahead, while the total tonnage was ahead by 10.1 per cent.