Eagle Materials Revenues Boosted by Proppants

Eagle Materials Inc of Dallas, TX has reported net earnings of US$37.7 million on revenues of US$266.3 million for its first quarter, the three months ended June 30, 2014 compared with US$30.1 million on revenues of US$227.0 million in the same period of 2013. The growth was led by its new oil & gas proppants business, but growth was also evident in the company’’s gypsum wallboard, cement, concrete and aggregates segments. The Oil and Gas segment reported an operating loss of US$0.6 million on revenues of US$11.2 million versus an operating loss of US$855,000 on revenues of US$942,000 in the 2013 period. During the quarter, Eagle continued to process and sell purchased sand in Corpus Christi, TX while it awaits the opening of its mine in Illinois. With the receipt of the final permit necessary to start up the mine, the company expects to be processing and selling its own sand no later than year-end, primarily into the Ford Shale market. Eagle’s Gypsum Wallboard and Paperboard segment reported an operating profit of US$45.0 million on revenues of US$136.1 million compared with US$35.3 million on US$114.9 million in the prior year quarter. The wallboard business generated an operating profit of US$37.4 million on revenues of US$112.7 million up from US$29.6 million on revenues of US$96.0 million. The improvement reflects a 7% increase in wallboard shipments, to 569 million sq ft, and an 11% increase in average selling price to US$161.74/MSF. Eagle’s Concrete and Aggregates segment recorded an operating profit of US$1.4 million on revenues of US$25.9 million versus US$1.0 million on US$23.9 million in the corresponding period of 2013. A 9% decrease in aggregates volume sales to 818 million tons was offset by an 8% increase in the average selling price to US$7.40/ton.

Volume 28 issue 14

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