Texas Industries - TXI - Earnings worse than Estimates
1/10/2013 11:57:20 AM
Texas Industries, Inc. (NYSE:TXI) reported financial results for the quarter ended November 30, 2012. Results for the quarter were a net loss of $11.1 million or $.40 per share. The results for the period included an after tax charge for variable stock based compensation of $1.5 million or $.05 per share. Results for the quarter ended November 30, 2011 were a net loss of $21.0 million or $.75 per share and included a one-time, pre-tax charge of $3.2 million ($.11 per share after-tax) relating to the Company's cost cutting and efficiency initiatives announced in September, 2011 and after tax income from variable stock based compensation of $1.6 million or $.06 per share.
"Net sales for cement were up 20% compared to the same quarter a year ago and marks the sixth consecutive quarter that net cement sales exceeded the prior year," stated Mel Brekhus, Chief Executive Officer. "Aggregate and ready-mix net sales were up 32% and 18% respectively compared to a year ago."
"I am happy to announce that the commissioning of the second kiln at our central Texas plant began as scheduled and is on target to be completed this spring. With the rebound in Texas cement consumption well into its second year, the timing of our expansion appears to be very good. At an annual production capacity of 1.4 million tons, the second kiln increases TXI's total annual cement capacity by 26% to approximately 6.7 million tons," added Brekhus.
Cement operating profit (loss) for the three-month periods ended November 30, 2012 and November 30, 2011 was $6.1 million and $(5.4) million, respectively.
Total segment sales for the three-month period ended November 30, 2012 were $91.4 million compared to $77.2 million for the prior year period. Cement sales increased $14.2 million from the prior year period. Our Texas market area accounted for approximately 69% of cement sales in the current period compared to 67% of cement sales in the prior year period. Average cement prices increased 3% in our Texas market from the prior year period. Average cement prices decreased less than 1% due to a change in product mix in our California market from the prior year period. Shipments increased 19% in our Texas market area and 13% in our California market area.
Cost of products sold for the three-month period ended November 30, 2012 increased $4.7 million from the prior year period primarily due to higher shipments. Cement unit cost of sales decreased 7% from prior year period primarily due to higher shipments and lower energy costs offset slightly by higher maintenance costs.
About Texas Industries - TXI
Texas Industries (TXI) is the largest producer of cement in Texas and a major cement producer in California. TXI is also a major supplier of construction aggregate, ready-mix concrete and concrete products. TXI is a supplier of heavy construction materials in the southwestern United States. The Company operates in three segments: cement, which produces gray portland cement and specialty cements; aggregates, which produces natural aggregates, including sand, gravel and crushed limestone, and specialty lightweight aggregates, and consumer products, which produces ready-mix concrete. The Company's cement production and distribution facilities are concentrated primarily in Texas and California. As of May 31, 2012, the Company had 82 manufacturing facilities in six states.