US: Eagle Materials has reported that in the first quarter of its 2016 fiscal year, which ended on 30 June 2015, its revenues grew by 7% to US$285m, its earnings before interest and income taxes grew by 1% to US$60.4m, its earnings before interest, taxes, depreciation and amortisation (EBITDA) grew by 10% toUS$84.6m and its net earnings grew marginally to US$37.8m.
First quarter net sales prices improved across nearly all businesses, with the most notable increases in the cement and concrete businesses. Extraordinarily wet weather in many of itscement markets, including Texas, Oklahoma and Colorado, adversely impacted the timing of cement sales volumes during the first quarter. However, Eagle Materials reported that its underlying demand for its cement continues to remain strong. In addition, all of its cement facilities completed their planned annual outages during the first quarter and cement maintenance costs were approximately US$3m higher than the prior year's first quarter.
Its cement revenues for the first quarter, including joint venture and intersegment revenues, totalled US$128.2m, which was slightly higher than the same quarter last year. The average net sales price grew by 9% year-on-year. Cement sales volumes fell by 7% to 1.2Mt. The most significant decline in cement sales volumes occurred in Texas, primarily associated with well-above average rainfall during the period. Operating earnings from cement for the first quarter of 2016 grew by 25% to US$25.7m. The earnings improvement was driven primarily by improved average net cement sales prices, lower energy, raw materials and purchased cement costs, partially offset by lower cement sales volumes and US$3m of increased costs associated with a shift in the timing of all the annual maintenance outages at cement plants to the first quarter.