US: Eagle Materials Inc has reported its financial results for its 2015 fiscal year that ended on 31 March 2015.
Earnings before interest and income taxes increased by 32% year-on-year to US$265m, reflecting improved sales volumes across nearly all business lines, with cement sales volumes setting an annual record of 4.8Mt. Net sales prices also strengthened across all businesses. Fourth quarter earnings before interest and income taxes increased by 31% to US$44.4m, as fourth quarter sales volumes improved across nearly all businesses, reflecting improving construction fundamentals in the US.
On 3 March 2015, Eagle entered into a definitive agreement with Holcim (US) to purchase its 600,000t/yr granulated ground blast furnace slag (GGBFS) plant in South Chicago. The purchase price of US$30m is subject to customary post-closing adjustments and will be funded from operating cashflow. The transaction is expected to close in the second quarter of its 2016 fiscal year and is conditioned upon the closing of the Lafarge-Holcim global merger.
Operating earnings from gypsum wallboard and paperboard grew by 28% year-on-year to US$177m in the 2015 financial year. Revenues from gypsum wallboard and paperboard grew by 13% year-on-year to US$525m. Gypsum wallboard and paperboard fourth quarter operating earnings grew by 32% year-on-year to US$38.3m. The increase in operating earnings was primarily due to higher net wallboard and paperboard sales prices and higher wallboard sales volumes. Gypsum wallboard and paperboard revenues for the fourth quarter grew by 5% year-on-year to US$112m. The average gypsum wallboard net sales price for the quarter grew by 4% year-on-year to US$168.97/Mft2. Gypsum wallboard sales volumes grew by 5% year-on-year to 464Mft2 in the fourth quarter.
