Displaying items by tag: Eagle Materials

US: Eagle Materials has reported financial results for the first quarter of its 2015 fiscal year, which ended on 30 June 2014. First quarter earnings before interest and income taxes increased by 21% year-on-year to US$59.8m, as first quarter sales volumes improved across nearly all businesses areas and sales prices improved in all businesses.

Operating earnings from cement for the first quarter were US$20.5m, an 8% increase from the same quarter of the 2014 fiscal year. The earnings increase was driven by record cement sales volumes and a 5% increase in average net cement sales prices. While cement demand continues to recover, extraordinary rail congestion associated with the harsh winter weather adversely impacted the timing of cement shipments during the first quarter. Cement revenues, including joint venture and intersegment revenues, totalled US$128m, up by 9% year-on-year. Cement sales volumes were 1.3Mt, up by 4% year-on-year. The average net sales price grew by 5% year-on-year.

US: Eagle Materials Inc has reported financial results for fiscal year 2014, which ended on 31 March 2014. Company revenues were up by 40% year-on-year to US$898.4m and net earnings grew by 50% year-on-year to US$200m, reflecting improved sales volumes and stronger sales prices across all business lines. Annual revenue and earnings improvement also reflects the acquisition of assets, including cement plants in Missouri and Oklahoma on 30 November 2012.

Fiscal 2014 operating earnings from cement were up by 94% year-on-year to US$89.5m, while revenues from cement, including joint venture (the Texas Lehigh Cement Company LP) and intersegment sales, grew by 44% year-on-year to US$438.2m. Cement sales volumes reached a record 4.6Mt for the year.

Operating earnings from cement during the fourth quarter of fiscal 2014 were up by 422% year-on-year to US$12.0m. The earnings were impacted by US$4.5m associated with the annual maintenance outage at the Illinois cement plant, whereas 2013's fourth quarter cement earnings were impacted by US$14m, associated with maintenance costs at the recently acquired cement plants cement plants in Missouri and Oklahoma. Cement revenues for the quarter, including joint venture and intersegment revenues, grew by 10% year-on-year to US$81.7m. Cement sales volumes for the fourth quarter were up by 4% year-on-year at 803,000t.

US: Eagle Materials has reported financial results for the second quarter of fiscal 2014, which ended 30 September 2013. Total revenues were up by 53% to US$252.6m. Earnings before interest and income taxes (EBIT) were US$63.5m, an increase of 114% compared to the same quarter of the prior fiscal year.

Sales volumes were improved across all lines, with cement sales volumes of 1.4Mt providing earnings of US$32.4m, an 86% increase from the same quarter of fiscal 2013. The earnings increase resulted from increased sales volumes and average net cement sales prices, which were 3% higher than the second quarter in fiscal 2013.

US: Eagle Materials has reported financial results for the first quarter of the 2014 fiscal year, which ended on 30 June 2013. It saw its revenue for the quarter increase to US$227m, an increase of 47% year-on-year and earnings before interest and income taxes were up by 109% to US$49.5m. Its net earnings were US$30.1m, a 115% rise from US$14m in the first quarter of the prior fiscal year.

Operating earnings from Eagle's cement activities were US$19m, a 93% increase from the same quarter a year earlier. The earnings increase was driven by increased sales volumes and average net cement sales prices partially offset by a slight increase in operating costs.

Cement revenues for the first quarter, including joint venture and inter-segment revenues, came to US$117.7m, 55% higher year-on-year. The revenue improvement reflects a 46% increase in its first quarter cement sales volume, including sales volume attributable to cement plant assets acquired form Lafarge in 2012. The average net sales price for this quarter was up by 6% from the first quarter of the 2013 fiscal year.

US: The US-based building materials provider Eagle Materials has reported financial results for the third quarter of the 2013 fiscal year, which ended on 31 December 2012. These showed that its revenue was up by 33% compared to the same period of the prior fiscal year. Earnings per share were up by 429% year-on-year.

Eagle's third quarter sales volumes improved across all business lines, with sales prices improving in all but one of it business lines. Operating earnings from its cement operations for the quarter came to US$16.6m, a 7% increase from the same quarter a year ago. Cement revenues for the quarter, including joint venture and inter-segment revenues, totalled US$74.9m, 22% greater than the same quarter of the previous year. Cement sales volumes for the quarter were 0.82Mt, 17% above the same quarter a year ago.

On November 30, 2012, Eagle completed its previously announced acquisition of Lafarge North America's Sugar Creek, Missouri and Tulsa, Oklahoma cement plants, as well as related assets. Eagle used cash proceeds from an equity offering completed on 3 October 2012, along with borrowings under its bank credit facility to fund the purchase.

Eagle Materials has picked up two cement plants in the US from Lafarge with a combined capacity of 1.6Mt/yr for US$446m. The deal also included six distribution terminals, two aggregates quarries, eight ready-mix concrete plants and a fly ash business.

Following our column in August 2012 following an acquisition in India we decided to ask a similar question: how much are American cement plants worth?

Eagle's acquisition now increases its presence in the Midwest and South Central regions of the US, giving it a rough line of plants across the country nearly connecting Lake Michigan to the Gulf of Mexico. As shown in our industry report on the US between 2005 and 2011 cement consumption fell in both the states the plants are located in. Missouri's consumption fell by 45% from 2.82Mt to 1.56Mt, just above the US national average. By contrast Oklahoma's consumption only fell by 11%, from 1.6Mt to 1.43Mt, the fourth smallest decline in the country.

However, Eagle has demonstrated financial health in contrast to the US sector as a whole, reporting a 21% rise in total revenue in the quarter to 30 June 2012 and a 60% rise in operating earnings year-on-year in the quarter to 31 March 2012. The combined operations at the two plants generated about US$178m in revenue during the year ending in June 2012. By contrast Eagle Materials' revenue totalled US$529m during the same period. The plants' additional capacity will increase Eagle's total by about 60%.

Lafarge are still thinking big though, with the proviso that Eagle will supply certain Lafarge operations with cement for four to five years, as well as an agreement with a Lafarge affiliate to supply low-cost alternative fuels to the acquired operations. According to its 2011 annual report North America comprised 11% of Lafarge's cement sales. Lafarge's sales in the US remained flat in 2011. In that year the company's capacity was 12.8Mt with a 12% market share. This picture has started to change in 2012 with a reduced loss in earnings before interest, tax, depreciation and amortisation (EBITDA) in the first quarter followed by volume and sales increases of above 10% in the second quarter.

Back in June 2011 Cementos Argos picked up two plants from Lafarge in Roberta, Alabama and Harlyville, South Carolina for US$760m with a combined capacity of 2.7Mt/yr. As with the Eagle deal the sale included a number of peripheral assets including a clinker mill, cement mixer lorries and a marine port.

Cementos Argos recently put the world average at US$250m/t when publicising the expansion of its Rioclaro plant. The European Cement Association reports the figure at being above US$200m/t on its website. In August 2012, at the time of the potential CRH acquisition in India, the cost of Indian cement production capacity was placed at US$110/t-US$120/t.

Perhaps the question we should ask is how much is a US cement plant worth when it used to belong to Lafarge. Both the Cementos Argos sale and the Eagle deal worked out at US$280/t including all the ancillaries. The actual question we should ask is why has Lafarge chosen these specific plants to sell to a competitor in the US market?

US: Eagle Materials Inc. has issued a press release announcing that it has entered into a definitive agreement with Lafarge North America to purchase Lafarge's Sugar Creek plant in Missouri and Tulsa plant in Oklahoma, which have a combined cement capacity of 1.6Mt/yr. The deal also includes six distribution terminals, two aggregates quarries, eight ready-mix concrete plants and a fly ash business.

Eagle will also enter into a transition sales agreement to supply certain Lafarge operations with cement for four to five years and an agreement with a Lafarge affiliate to supply low-cost alternative fuels to the acquired operations.

The purchase price for the group of assets is US$446m, subject to customary post-closing adjustments. The acquisition will increase Eagle's cement capacity by 60% and it is expected to close in November or December 2012, pending regulatory approvals.

Steven Rowley, Eagle Materials' President and Chief Executive Officer, said that the agreement represents a major milestone event for the company. "Our stated strategy has been to grow the cement and aggregates side of our business. Our first priority has been to acquire cement plants that connect but do not overlap with the market reach of our existing plants."

"These two high-quality Lafarge cement plants are a compelling fit with our objectives and the transaction meets our stringent criteria for new investment," continued Rowley. "These assets will allow us to participate more fully in the US construction industry recovery. Additionally this transaction further positions the company near energy growth markets, where there is growing demand for our specialty oil well cement, along with our newly-offered high-quality northern white frac sand. These new cement, concrete and aggregates assets will immediately contribute earnings and cash flow for our stockholders. Moreover they will provide significant near-term opportunities for synergies and earnings growth."

US: Eagle Materials Inc has reported a 29% rise in total revenue for the first quarter of the 2013 fiscal year which ended on 30 June 2012. The North American building materials producer noted revenue of US$154m for the quarter, up from US$120m in the same period in 2011.

Cement sector revenues for the first quarter, including joint venture and intersegment revenues, totalled US$76m, a 26% increase year-on-year from US$59m in 2011. Sales volumes rose by 26%, including wholly-owned and joint ventures, to 848,000t from 674,000t. The revenue improvement reflects a 26% increase in first quarter cement sales volume. Cement price increases were achieved in both the Texas and Mountain regions during the first quarter but were offset by the increased pace of high-volume, lower-priced bid work in the company's other markets.

Operating earnings from cement for the first quarter were US$9.9m, a 12% increase from US$8.8m year-on-year. The earnings impact from increased cement sales volumes was mostly offset by higher maintenance costs associated with scheduled maintenance at all of Eagle's cement facilities. The company calculated that first quarter operating earnings were negatively impacted by approximately US$8m due to this maintenance.

US: Eagle Materials Inc. has reported its financial results for the 2012 fiscal year and the fiscal fourth quarter that ended on 31 March 2012. Its results showed that the group's revenue was up by 7% for the fiscal year, to US$495m and cash flow from operations was US$60.2m, up by 37%. In the quarter ending 31 March 2012, the company netted revenues of US$116.8m, a 22% year-on-year increase.

Eagle said that its low cost operations continued to execute well during the 2012 fiscal year and that it was beginning to see improving construction activity across most of its markets. Eagle's earnings began to improve during the second half of fiscal 2012 and accelerated during the fourth quarter.

The company saw improved cement revenues, which were up by 8% for the full fiscal year to US$244m. Operating earnings from cement were up by 3% to US$46.9m. In the fourth quarter its cement operating earnings were US$7.5m, a massive 60% increase from the same quarter of the 2011 fiscal year.

Eagle said that the increase in its cement earning primarily reflected improved sales volumes and sales prices offset by US$2m of additional maintenance costs incurred in the quarter versus the prior year quarter. Cement revenues for the quarter, including joint venture and intersegment revenues, totalled US$49.8m, 23% greater than the same quarter of 2011. Cement sales volumes for the quarter were 0.53Mt, 20% higher than the same quarter of 2011.