Eagle Materials Inc. reported record revenue of $1.4 billion, up 14 percent for fiscal year 2018; and record revenue of $284.7 million, up 2 percent for its fiscal fourth quarter ended March 31, 2018.
Eagle’s Oil and Gas Proppants segment reported fiscal 2018 revenue of $85.5 million, an increase of 147 percent, primarily reflecting a 170 percent increase in frac sand sales volume. The fiscal 2018 operating loss was $6.4 million versus an operating loss of $14.6 million in the prior year. Eagle’s Oil and Gas Proppants segment reported fourth quarter revenue of $22.6 million, an increase of 43 percent, primarily reflecting a 59 percent increase in frac sand sales volume. The fourth quarter sales volume was impacted by harsh winter weather and rail delays. The fourth quarter’s operating loss of $1.6 million includes depreciation, depletion and amortization of $3.7 million.
Revenue from Cement, including joint venture and intersegment revenue, increased 15 percent to $651.8 million for full fiscal 2018. Fiscal 2018 operating earnings from Cement were a record $179.2 million, an increase of 17 percent, reflecting the financial results of the acquired cement plant in Fairborn, Ohio, and related assets (the Fairborn business) and improved pricing.
Revenue in the Heavy Materials sector, which includes Cement, Concrete and Aggregates and joint venture and intersegment Cement revenue, increased 12 percent to $807.4 million in fiscal year 2018. Heavy Materials operating earnings for the fiscal year were $197.0 million, an increase of 15 percent.
Fiscal 2018 revenue from Concrete and Aggregates increased 2 percent to $155.7 million. Concrete and Aggregates reported fiscal 2018 operating earnings of $17.9 million, down 1 percent.
Concrete and Aggregates revenue for the fourth quarter of 2018 was $30.7 million, a decrease of 22 percent. Fourth quarter operating earnings were $2.8 million, a 44 percent decline from the same quarter a year ago.
Operating earnings from Cement for the fourth quarter were $24.7 million, 5 percent below the same quarter a year ago. The earnings decline was driven primarily by reduced sales volume due to persistently wet weather in many of our markets and was partially offset by earnings from the Fairborn Business and improved average net cement sales prices.
Cement revenue for the quarter, including joint venture and intersegment revenue, was down 1 percent to $115.6 million. Cement sales volume for the quarter was down 4 percent to 945,000 tons. The average net sales price for the quarter improved 3 percent to $108.98 per ton.
Commenting on the results, Dave Powers, president and CEO, said, “Our track record of competitive margin performance remains industry leading due to our long-standing commitment to improving our low-cost producer positions, through wise investment in our people, processes and operations. We have invested more than $1.5 billion so far this cycle to profitably grow our businesses and create shareholder value. As we look ahead, our strong balance sheet and anticipated cash flows, which have been enhanced by tax reform, position us to continue to execute on value-creation opportunities.”