Texas Industries Inc. (TXI) reported financial results for the quarter ended Nov. 30, 2011. Results for the quarter were a net loss of $21.0 million or $.75 per share and included a one-time, pre-tax charge of $3.2 million ($.11 per share after-tax) relating to the company's cost-cutting and efficiency initiatives announced last September. Additionally, the reduction of the tax rate, compared to a year ago, increased the loss by $.30 per share. Results for the quarter ended Nov. 30, 2010, were a net loss of $11.2 million or $.40 per share.
“While the general economy is showing signs of some improvement, it has yet to manifest itself in increased construction activity in our markets,” said Mel Brekhus, chief executive officer. “This is consistent with my expectation of a slow and prolonged recovery in the construction industry.
“I am pleased with the progress we have made on our cost-cutting and efficiency initiatives,” Brekhus said. “Our total headcount is down 11 percent compared to Aug. 31, 2011. Projects are underway to improve efficiencies throughout our operations and our efforts to reduce costs through improved purchasing practices are showing good results. There is obviously much more work to be accomplished in order to reach our goals of a 15 percent gross profit margin and SG&A expense at 8 percent of sales by the end of fiscal year 2013 but we are off to a very good start.”
Aggregate operating profit for the three-month periods ended Nov. 30, 2011, and Nov. 30, 2010 was $2.1 million and $3.3 million, respectively.
Total segment sales for the three-month period ended Nov. 30, 2011, were $40.0 million compared to $41.1 million for the prior year period. Stone, sand and gravel sales decreased $1.7 million from the prior year period. The effect of the disposition of aggregate operating assets through the asset exchange transaction completed in April 2011 decreased sales $2.2 million, shipments 8 percent and average prices 2 percent from the prior year period. Stone, sand and gravel sales from current operations increased $0.5 million from the prior year period on 1 percent higher shipments and 2 percent higher average prices.Cost of products sold for the three-month period ended Nov. 30, 2011, increased $0.3 million from the prior year period. Stone, sand and gravel unit costs decreased 3 percent from the prior year period.