Eagle Materials Inc. reported financial results for the first quarter of fiscal 2018 ended June 30, 2017. The company is reporting record revenues of $366.1 million, up 23 percent.
Oil and Gas Proppants reported first quarter revenues of $18.9 million, a 271 percent increase from the prior year reflecting improved frac sand sales volumes and net sales prices. The first quarter’s operating loss of $2.0 million includes depreciation, depletion and amortization of $7.6 million.
Concrete and Aggregates reported revenues for the first quarter of $43.5 million, an increase of 26 percent. First quarter operating earnings were $6.0 million for the first quarter, a 63 percent improvement from the same quarter a year ago, reflecting improved concrete and aggregates pricing and concrete sales volumes.
Cement revenues for the first quarter, including joint venture and intersegment revenues, totaled $182.9 million, which was 26 percent higher than the same quarter last year. The average net sales price for this quarter was $106.95 per ton, 6 percent higher than the same quarter last year.
Total Cement segment sales volumes for the quarter were more than 1.5 million tons, 21 percent higher than the same quarter a year ago. Like-for-like average net cement sales prices and sales volumes increased 4 percent and 7 percent, respectively, versus the first quarter of fiscal 2017 (comparison excludes cement sales from the Fairborn Business since its acquisition date).
Operating earnings from cement for the first quarter were a record $43.2 million and 37 percent greater than the same quarter a year ago. The earnings improvement was driven primarily by improved average net cement sales prices and cement sales volumes and earnings from the Fairborn Business.
During the quarter, its Nevada cement plant experienced reduced production in connection with the installation of certain pollution control equipment to enable the plant to burn solid-waste fuels. The ability to use solid-waste fuel will lower energy costs in the future. The reduced production negatively affected the absorption of operating costs at the cement plant during the quarter. The project is expected to be completed in the fall.