Eagle Materials Inc. reported financial results for the third quarter of fiscal 2021 ended Dec. 31, 2020. The company is reporting:
- Record third quarter revenue of $404.7 million, up 18%.
- Third quarter diluted earnings per share from continuing operations of $1.94, up 87%.
- Prior-year diluted earnings per share include an asset impairment charge of $0.47 related to continuing operations.
Commenting on the third quarter results, Michael Haack, Eagle Materials president and CEO, said, “Our third quarter results demonstrate the overall resilience of our portfolio. Despite continued pandemic-related economic uncertainty, our wallboard shipments were up 9%, a third quarter record for American Gypsum, and our cement shipments were up 28%, reflecting the strong performance of the recently acquired Kosmos Cement Business and the strength of our core markets. We continued to generate strong operating cash flow, which significantly improved our balance sheet and liquidity position providing us with increased financial flexibility.”
Revenue in the Heavy Materials sector, which includes Cement, Concrete and Aggregates, as well as Joint Venture and intersegment Cement revenue, was $277.6 million, a 21% improvement. Heavy Materials operating earnings increased 31% to $75.5 million primarily because of improved Cement net sales prices and earnings from the recently acquired Kosmos Cement Business.
Cement revenue for the quarter, including Joint Venture and intersegment revenue, was up 28% to $234.1 million, and operating earnings were $70.4 million, up 30%. These increases reflect improved Cement net sales prices and the significant contribution of the recently acquired Kosmos Cement Business, which accounted for approximately $45 million of revenue and $13 million of operating earnings during the quarter.
The average net sales price for the quarter increased 2% to $111.91 per ton. Excluding the impact from the Kosmos Cement Business, the average net sales price increased 4%. Cement sales volume for the quarter was 1.8 million tons, up 28% versus the prior-year period. Excluding the impact from the Kosmos Cement Business, Cement sales volume was flat with the prior-year period.
Concrete and Aggregates revenue decreased 7% to $43.5 million. The decline reflects the sale of its Northern California concrete and aggregates businesses during the first quarter of fiscal 2021. The company sold its Western Aggregates and Mathews Readymix operations for $93.5 million to Teichert, a California-based construction company.
Western Aggregates vested-rights-to-mine covers 3,900 acres and included more than 900 million tons of aggregates. Mathews Readymix assets included three concrete batch plant locations and 26 trucks.
Excluding the results from the sold businesses, Concrete and Aggregates revenue was up 13%. Third quarter operating earnings for Concrete and Aggregates increased 52% to $5.1 million, primarily reflecting improvements in organic Concrete sales volume, Concrete sales prices and operating efficiencies, as well as lower diesel fuel costs.