Eagle Materials Aggregates Business Up 19 Percent

Eagle Materials Inc. reported financial results for fiscal year 2016 and the fiscal fourth quarter ended March 31, 2016.

The company is reporting year-over-year:

  • Record revenues of $1.1 billion, up 7 percent.
  • Cash flow from operations of $265.8 million, up 14 percent.
  • Net earnings per diluted share of $3.05, down 18 percent.

Concrete and aggregates reported fiscal 2016 operating earnings of $9.8 million, up 46 percent compared to the prior year. Revenues from concrete and aggregates were $127.2 million for fiscal 2016, 19 percent higher than last year.

Eagle’s oil and gas proppants business reported fiscal 2016 revenues of $57.6 million, a decline of 29 percent from the prior year, which reflects the significant slowdown in oil and gas drilling activity during our fiscal year. The fiscal 2016 operating loss was $68.5 million, which includes $37.8 million of Non-Routine Items recorded in the second quarter of fiscal 2016 and depreciation, depletion and amortization expense of $27.2 million.

Fiscal 2016 operating earnings from cement were a record $137.9 million, an increase of 17 percent compared to fiscal 2015. Revenues from cement, including joint venture and intersegment sales, were $528.5 million for fiscal 2016, 8 percent higher than last year.

The company fourth quarter results include:

  • Record revenues of $252.1 million, up 13 percent.
  • Cash flow from operations of $49.5 million, down 6 percent.
  • Net earnings per diluted share of $0.80, down 14 percent.

Eagle’s construction products and building materials businesses performed well during the quarter, with the cement business reporting record fourth quarter operating earnings of $21.8 million. Additionally, in Texas, increased demand for construction grade cement continues to offset much of the impact from lower oil well cement demand.

Fourth quarter operating earnings from cement were a record $21.8 million, a 4 percent increase from the same quarter a year ago. Cement revenues for the quarter, including joint venture and intersegment revenues, totaled $100.1 million, 10 percent greater than the same quarter last year.

Cement sales volumes for the quarter were 879,000 tons, 6 percent higher than the same quarter a year ago. The average net sales price for this quarter was $100.41 per ton, a slight improvement from the same quarter last year.

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