New Home Sales Slip in April After Strong Start to Year

Sales of newly built, single-family homes in April dropped for the first time in 2017, falling 11.4 percent to a seasonally adjusted annual rate of 569,000 units, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. Sales numbers for the first three months of the year were all upwardly revised, and the March sales pace was the highest since October 2007.

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Cemex USA Recognized by Texas Parks & Wildlife

Cemex USA was recognized by the Texas Parks and Wildlife Department for its ongoing commitment to sustainability and land stewardship with the prestigious 2017 Lone Star Land Steward Award for the Trans Pecos Ecoregion.

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Sens. Warner, Blunt Introduce Bipartisan BRIDGE Act

Sens. Mark R. Warner (D-Va.) and Roy Blunt (R-Mo.) led a bipartisan coalition of senators in introducing legislation to establish a new infrastructure financing authority to help states and localities better leverage private funds to build and maintain the nation’s outdated infrastructure. 

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Eagle Materials' Concrete and Aggregates, Cement Revenues Spike

Eagle Materials Inc reported financial results for fiscal year 2017 and the fiscal fourth quarter ended March 31, 2017. Notable items for the fiscal year and quarter include:

  • Record yearly revenues of $1.2 billion, up 6 percent.
  • Cash flow from operations of $331.6 million, up 25 percent.
  • Record net earnings per diluted share of $4.10, up 34 percent.
  • Record quarterly revenues of $278.7 million, up 11 percent.
  • Net earnings per diluted share of $0.75, down 6 percent.

Concrete and Aggregates reported fiscal 2017 operating earnings of $18.1 million, up 84 percent compared to the prior year. Revenues from Concrete and Aggregates were $153.3 million for fiscal 2017, 21 percent higher than last year.

The Concrete and Aggregates segment reported revenues for the fourth quarter of $39.5 million, an increase of 28 percent. Fourth quarter operating earnings were $5.0 million, a 99 percent improvement from the same quarter a year ago, reflecting record quarterly concrete sales volumes and record concrete and aggregates sales prices.

Eagle's fourth quarter financial results include approximately $9.4 million (pre-tax), or $0.13 per share, of costs associated with completing the acquisition of the Fairborn business. 

On Feb. 10, 2017, Eagle completed its previously announced acquisition of Cemex S.A.B. de C.V.'s Fairborn, Ohio, cement plant and related assets. Eagle used cash on-hand, along with borrowings under its bank credit facility, to fund the purchase. The results of operations of the Fairborn business are included in the results disclosed for the period from February 10 through March 31, 2017. 

The company's fourth quarter results were impacted by non-routine acquisition related expenses of approximately $4.4 million (pre-tax), or $0.06 per diluted share, directly associated with completing the acquisition of the Fairborn business. Additionally, its fourth quarter cement earnings were impacted by expenses of approximately $5.0 million (pre-tax), or $0.07 per share, associated with annual maintenance costs at the Fairborn business and the impact of purchase accounting on inventory costs.

Fiscal 2017 cash flow from operations improved 25 percent and was used to partially fund the acquisition of the Fairborn business, invest in capital improvements, pay dividends and repurchase shares. Eagle ended the year with a net debt-to-capitalization ratio of 36 percent.

Fiscal 2017 operating earnings from the Cement segment were a record $153.5 million, an increase of 11 percent compared to fiscal 2016. Revenues from Cement, including joint venture and intersegment sales, were $566.3 million for fiscal 2017, 7 percent higher than last year.

Fourth quarter operating earnings from Cement were a record $25.9 million, a 19 percent increase from the same quarter a year ago. 

Cement revenues for the quarter, including joint venture and intersegment revenues, totaled $116.7 million, 17 percent greater than the same quarter last year. Cement sales volumes for the quarter were 980,000 tons, 11 percent higher than the same quarter a year ago. 

The average net sales price for this quarter was $106.17 per ton, a 6 percent improvement from the same quarter last year. Like-for-like cement sales volumes and net sales prices both increased 5 percent versus the fourth quarter of fiscal 2016 (comparison excludes cement sales from the Fairborn business since its acquisition date).

MSHA Issues New Serious Accident Alert

The Mine Safety and Health Administration (MSHA) has issued a new Metal/Nonmetal Serious Accident Alert.

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