US: Continental Building Products (CBP) has announced its results for the second quarter of 2014, which ended on 30 June 2014. Net sales increased by 3.2% to US$103m and adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) fell to US$26.7m from US$27.4m for the same period of 2013.
"During the second quarter we continued to grow our net sales, generate significant cash flow and strengthen our balance sheet," said Ike Preston, CBP's CEO. "Excluding the impact of higher freight costs, our average mill net pricing remained firm compared to the first quarter 2014, as expected. Our overall modest wallboard demand was supported by higher shipments in our US operations that grew by 3.1% compared to 2013. As we look to the remainder of 2014, we remain confident in our ability to maintain disciplined cost control and generate additional cash flow as demand improves."
Average gypsum wallboard prices rose by 4.1% during the quarter. Wallboard volumes rose slightly to 525Mft2 compared to 523Mft2 in the same quarter of 2013, with a 3.1% increase in US volumes mostly offset by lower volumes in Canada. The second quarter gross profit was significantly impacted by purchase accounting from the acquisition by Lone Star. Gross profit was US$20.9m, down compared to US$25.7m in the same quarter of 2013, primarily as a result of US$7.8m in higher depreciation and amortisation costs from the acquisition.
Operating income was US$12.8m in the second quarter of 2014, down from US$17.2m in the prior year quarter, largely attributable to the impact of higher depreciation and amortisation resulting from the Lone Star acquisition. Net income was US$4.7m for the second quarter of 2014, compared to US$16.7m in the prior year quarter.
