Eagle Materials aggregate revenues up in second quarter 2018

By |  October 25, 2017

Eagle Materials reported its financial results for the second quarter of fiscal year 2018, revealing record revenues of $376.3 million, up 13 percent from the the second quarter of fiscal year 2017.

The company also boasted earnings before income taxes of $92.3 million, up 3 percent from the same time period one year ago; and net earnings per diluted share of $1.31, up 5 percent from the same time period one year ago.

During the second quarter, the company’s concrete and aggregate segment was at $43 million, an 11 percent increase from the prior year’s second quarter. In addition, second quarter operating earnings were $5.6 million, a 17 percent improvement from the same quarter one year ago.

Cement revenues for the second quarter, which includes joint venture and intersegment revenues, totaled $191.7 million, which was 15 percent higher than the same quarter last year. The average net sales price for the second quarter was $106.96 per ton and total cement sales volumes for the quarter were 1.6 million tons, up 7 and 9 percent, respectively, compared with the same quarter a year ago.

In addition, like-for-like average net cement sales prices increased 5 percent, and sales volumes declined 5 percent, both compared with the same time period one year ago. According to the company, its cement shipments were negatively impacted during the second quarter by the weather across its Midwest markets, and its Texas cement shipments were impacted by hurricane flooding.

During the second quarter, the company’s Nevada cement plant successfully completed the installation of certain pollution control equipment in connection with its plans to burn solid-waste fuels. The ability to use solid-waste fuel will lower energy costs in the future, the company says.

However, to complete the project, the plant reduced production output, which negatively affected the absorption of operation costs by $2 million.

Finally, operating earnings from cement for the second quarter were a record $58.8 million and 16 percent greater than the same quarter one year ago. According to the company, the earnings improvement was caused mainly by earnings from the Fairborn business and improved average net cement sales prices offset by lower sales volumes from its legacy facilities and its Nevada cement plant project.

“Eagle Materials’ quarterly results reflect hurricane and other weather-related operational and demand interruptions,” says Dave Powers, president and CEO at Eagle Materials. “We were more fortunate than many as our employees remained safe and our operations incurred no damage. Eagle is poised to serve our customers’ additional needs as they meet the challenges of rebuilding over the coming quarters.”

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