TXI Reports Third Quarter Results Thursday March 27, 8:30 am ET
DALLAS, March 27 /PRNewswire-FirstCall/ -- Texas Industries, Inc. (NYSE: TXI - News) today reported net income for the quarter ended February 29, 2008 of $14.6 million ($.53 per share). For the same period ended February 28, 2007, net income equaled $12.7 million ($.50 per share).
"The commissioning of TXI's new cement capacity in California is under way and we expect the plant to be fully operational in June of 2008," stated Mel Brekhus, Chief Executive Officer. "Construction of TXI's Central Texas cement expansion project is also ramping up and we look forward to the commissioning of that new capacity in about two years. These two projects and the incremental addition of production at our North Texas plant are expected to increase TXI's total annual cement capacity from today's 5 million tons to almost 8 million tons over the next several years."
"Cement segment operating profit -- excluding short-term items -- was approximately even with that in last year's quarter," continued Brekhus. "Once the new cement capacity in California is fully operational, production efficiencies in California should be greatly enhanced. Operating results for the aggregate and consumer products business segments improved during the third quarter, reflecting both better weather and our efforts to improve efficiencies and margins. In fact, operating profit for the aggregate segment during the first nine months of the current fiscal year has increased by 35% compared to the same period last year and operating profit for the consumer products segment has increased by 80%."
The Texas economy continues to generate a solid overall level of construction activity. Cement consumption has remained at approximately 17 million tons for the last two years, well above the state's total production capacity of 12 million tons. In the California region, reductions in cement demand continue to be offset by declining imports. Cement price increases have been announced in both markets and aggregate product pricing trends continue to be positive.
Net sales for the quarter increased 6% over those of a year ago. Shipments of cement, aggregates and ready-mix concrete improved by 2%, 11% and 16%, respectively. In last year's quarter, extremely wet winter weather hindered shipments in Texas. Average realized prices for aggregates and ready-mix concrete increased by 3% and 5%. Average realized prices for the combined cement operations declined by 5% due to a shift in the mix of cement products and markets. Average realized cement prices should rise as we begin to benefit from announced price increases and as we begin to sell more cement in California.