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US: Eagle Materials has reported its financial results for the third quarter of the 2018 fiscal year, which ended on 31 December 2017. It recorded record revenues of US$359.4m, a rise of 19% compared to the same period of the 2017 fiscal year

Third quarter gross profit improved by 8%, reflecting the financial results of the recently acquired cement plant in Fairborn, Ohio and related assets (the Fairborn Business) and improved net sales prices across most of Eagle’s businesses. Cement, Concrete and Aggregates Cement revenues for the third quarter, including joint venture and intersegment revenues, totalled US$161.6m, 17% higher than the same quarter last year. Total cement sales volumes for the quarter were 1.3Mt, 12% greater than the same quarter a year earlier. Like-for-like average net cement sales prices increased by 4% and sales volumes declined by 2%, respectively, versus the third quarter of fiscal 2017. This comparison excludes cement sales from the Fairborn Business since its acquisition date.

Operating earnings from cement activities for the third quarter of the 2018 fiscal year were a record US$52.5m and were 16% greater than the same quarter a year ago. The earnings improvement was driven primarily by earnings from the Fairborn Business and improved average net cement sales prices offset by lower sales volumes from Eagle’s legacy facilities.

Africa/South Africa: Despite a decline in the construction sector, cement giant Pretoria Portland Cement (PPC) continues to defy the odds as it posted a 9% uptick in quarterly sales revenue. The cement producer said sales revenue in South Africa has seen an upswing of 2% with volumes increasing by at least 9%, although earnings per share disappointed as it fell by 55% for the period. However, revenue from outside of South Africa rose by 19% on the back of significant volume growth and newly commissioned plants in Rwanda as well as gains from the currency translations in Zimbabwe and Botswana. "The group's revenue has improved by 6% supported by strong cement sales volume growth in South Africa and Rwanda. Cement sales volumes grew in excess of 30% in the Coastal regions in South Africa," CEO Daryll Castle said.

"However, good cost control has led to further impressive declines in group overheads while variable delivered cost of sales per tonne in the South African cement business were well below inflation," Castle said. In addition, the cement maker said its cost of sales was also on the rise, increasing by 14% to R1.8bn (US$99m), largely on the back of higher volumes in the South African cement industry as well as more expensive logistics which rose by 3% during the period. "On consolidation of foreign currency denominated subsidiaries, the weakness of the rand contributed to rising cost of sales. Gross profit decreased by 11%, from R709m (US$50m) for the quarter ended June 2015 to R630m (US$44.4m) for the current quarter. "This decrease was mainly ascribed to the impact of selling prices pressures felt in our key cement operating markets together with the lower sales volumes in Zimbabwe and Botswana," the company said. But, the company said the R135m (US$9.5m)acquisition of 3Q Mahuma Concrete, one of the largest independently owned ready-mix concrete supplier in South Africa, will improve PPC's ready-mix footprint.