Eagle Materials announced its quarterly earnings results. The company is reporting record quarterly revenues of $329.0 million, up 16 percent, but net earnings of $29.8 million, down 41 percent. Net earnings were reduced by $26.2 million (after-tax) of Non-Routine Items related to its Oil and Gas Proppants Segment.
Eagle said its construction products and building materials businesses continued to perform exceptionally well during the second quarter, with the cement and paperboard businesses reporting record quarterly operating earnings and our wallboard and concrete and aggregates businesses reporting year-over-year improvements. Demand for building materials and construction products remains strong in each of its regional markets, the company said.
Concrete and Aggregates reported operating earnings of $3.9 million for the second quarter, a 30 percent improvement from the same quarter a year ago, reflecting improved concrete and aggregates pricing along with improved concrete sales volumes.
Cement revenues for the second quarter, including joint venture and intersegment revenues, totaled $164.8 million, 13 percent greater than the same quarter last year. Its average net cement sales price for this quarter was $97.21 per ton, 8 percent higher than the same quarter last year. Cement sales volumes were a quarterly record 1.5 million tons, 1 percent higher than the same quarter a year ago.
Oil and Gas Proppants reported second quarter revenues of $18.3 million, a 76 percent increase from the prior year, which reflects the impact of the acquisition of CRS Proppants during the third quarter of the prior fiscal year partially offset by lower second quarter frac sand sales volumes and sales prices at legacy business, which declined 36 percent and 13 percent, respectively.
The decline in oil prices during the summer adversely impacted U.S. oil and gas drilling activity leading to further reductions in demand and pricing for proppants. As a result, the company recorded impairments to several intangible assets originally booked in connection with its acquisition of CRS Proppants and revalued downward certain raw sand inventory values. The impairments and inventory revaluation charges totaled approximately $37.8 million (pre-tax) and are recorded in Cost of Goods Sold within our Oil and Gas Proppants segment.