US: Texas Industries Inc's (TXI) fiscal second-quarter loss widened as the construction materials company reported higher product costs and a jump in interest expenses, masking broad sales growth that boosted the top line. Though TXI reported higher sales for cement, concrete and the company's aggregate operations, the results were weaker than expected.
The company, which sells cement and other building materials in Texas and California, has struggled to compete against more geographically diverse peers. However, TXI has reported stronger sales so far this fiscal year.
For the quarter that ended on 30 November 2013 TXI reported a loss of US$17.6m compared to a loss of US$11.1m in the quarter that ended on 30 November 2012, while net sales grew by 25% to US$209m. Its gross margin narrowed to 6.8% from 7%. Sales by its cement segment, the company's largest top-line contributor, increased by 12% on higher shipments and a slight increase in prices. TXI announced that while pricing has improved, its prices still remain well below levels seen prior to the recession.