US: Eagle Materials has reported its financial results for the third quarter of the 2018 fiscal year, which ended on 31 December 2017. It recorded record revenues of US$359.4m, a rise of 19% compared to the same period of the 2017 fiscal year.
Gypsum wallboard and paperboard revenues for the third quarter of the 2018 fiscal year totalled US$162.6m, which were 11% greater than the same quarter a year ago. The average gypsum wallboard net sales price this quarter was US$151.13/MSF, 1% less than the same quarter a year ago. Gypsum wallboard sales volumes were a third quarter record of 709MMSF, a 10% increase from the same quarter last year. Paperboard sales volumes for the quarter were also a record and 7% greater than the same quarter a year ago. The average paperboard net sales price for the quarter was US$581.95/t, 11% greater than the same quarter a year ago.
Gypsum wallboard and paperboard activities reported third quarter operating earnings of US$50.7m, up by 1% from the same quarter last year. The earnings improvement primarily reflects improved gypsum wallboard and paperboard sales volumes and higher average paperboard net sales prices.
During the third quarter, Eagle and its subsidiary, American Gypsum, entered into settlement agreements with counsel representing the direct and indirect purchaser classes to settle all claims made against the company and American Gypsum. Pursuant to the settlement agreements, which remain subject to court approval, the Company and American agreed to make payments totalling approximately US$39m. Eagle and American Gypsum continue to deny all wrongdoing but settled to avoid further litigation expense, distraction of management, and the risk of litigation. Eagle expects to make this cash payment in the next 12 months.
