US-based Eagle Materials has reported a seven per cent YoY fall in revenue to US$333.3m in the third quarter of FY19, ended 31 December. Net earnings fell 43 per cent to US$57.7m from US$101.4m of the 3QFY18.
The company's prior-year financial results included two non-recurring items affecting comparability, including a tax benefit of around US$61m and a litigation settlement charge of US$39m, according to the company.
However, in the nine months to December, revenue was up 0.6 per cent YoY to US$1.11bn. Net earnings declined 10.5 per cent to US$196.66m from US$219.62m of the year-ago period.
"Adjusting for the effects of unusual weather trends during calendar 2018 and a shift in the timing of wallboard price increases and related buying activity, we estimate that the overall market demand for our building materials, notably cement and wallboard, remained in positive territory in calendar 2018, with growth rates in the low single digits," said Dave Powers, CEO.
In the Heavy Materials sector, which includes cement, concrete and aggregates, revenue declined three per cent to US$194.2m in the 3QFY19. Operating earnings dropped 14 per cent to US48.2m, primarily due to higher operating costs within the cement segment and unusually wet weather.
Cement revenue, including joint venture and intersegment revenue, rose one per cent to US$163.7m in the third quarter. The average net sales price for the period also improved one per cent to US$107.54/t, while sales volumes finished at 1.3Mt, a slight improvement against last year.
