Texas Industries Turns To Profit In Q1 On Strong Revenue Growth

(RTTNews) - Construction materials maker Texas Industries Inc. (TXI) om Wednesday reported a turnaround to profit in the first quarter on strong revenue growth. According to the company, the results reflected the continuing improvement in construction activity in all of its markets.

Total cement sales for the quarter grew 20 percent from the prior-year period to $104.23 million, amid higher shipments and prices in the company's Texas as well as California markets. The company noted that Texas market area accounted for about 70 percent of cement sales in the quarter compared to 67 percent of cement sales in the prior-year period.

Average cement prices rose 2 percent in the Texas market and 1 percent in the California market from the prior year period. Shipments increased 23 percent in the Texas market area and 8 percent in the California market area.

In Aggregate Operations, total stone, sand and gravel sales in the quarter rose 27 percent to $35.67 million, benefiting from a 14 percent increase in shipments and 12 percent increase in average prices.

Total ready-mix concrete sales grew 89 percent from the prior-year quarter to $98.23 million, while shipments rose 75 percent. According to the company, the addition of the 42 ready-mix concrete plants acquired through an asset exchange in the prior year period accounted for 65 percent of the increase in shipments.

Texas Industries' net income for the first quarter was $0.43 million or $0.01 per share, compared to net loss of $2.66 million or $0.08 per share in the year-ago period. On average, eight analysts polled by Thomson Reuters expected the company to report earnings of $0.01 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter grew 34 percent to $233.08 million from $174.52 million in the prior-year quarter. Analysts had a consensus revenue estimate of $233.63 million for the quarter.

Mel Brekhus, Chief Executive Officer of Texas Industries said, "So far, the start-up of our new kiln in central Texas has been the most successful of any I have been involved with in my career and we are realizing the benefits we expected from the expansion of our vertical integration footprint last spring. We continue to focus on doing everything we can to fully participate in the market recoveries under way, including accelerating the resumption of production from the first kiln in central Texas early next calendar year."

TXI closed Wednesday's regular trading session at $67.02, down $0.50 or 0.74 percent on a volume of 304,749 shares.