Texas Industries reported financial results for the quarter and year ended May 31, 2010
Texas Industries reported financial results for the quarter and year ended May 31, 2010. Net loss for the quarter was $9.8 million. The loss includes a noncash, after-tax charge of $5.4 million with respect to its defined benefit plans and the recognition of after-tax income of $2.6 million with respect to a reduction of its capital-lease obligation related to power facilities at the Oro Grande, Calif., cement plant.
Net loss for the year was $38.9 million. This compares with net loss for 2009 of $17.6 million and included an after-tax charge of $39 million from the impairment of goodwill associated with its California cement operations.
"This quarter marks the first time in over two years that the sales volumes during the period were flat or exceeded those of the prior year period," said Mel Brekhus, CEO. "Shipments were up 4% and 6% in our cement and consumer products segments, while aggregate shipments were flat. However, pricing was down in all segments compared to the same period a year ago and also compared to our third quarter.
"This has been an extraordinarily difficult year, and I am proud of the way we maintained our focus on cutting costs and generating cash. We began the year with $20 million of cash and ended it with $75 million of cash and we have an additional $89 million available under our credit facility.
"We have tremendous people and great assets in our markets; including our cement plant at Oro Grande, Calif., which ran very well during the quarter and demonstrated the efficiencies we expected. Nevertheless, conditions in our industry continue to be challenging and will remain so until the economy in general and construction in particular recovers."
Aggregate operating profit for the three-month period ended May 31, was $4.1 million, a decrease of $2.5 million from the prior fiscal period. This was primarily due to lower average sales prices.
Total segment sales for that period were $49.3 million, compared to $52.4 million for the prior fiscal period. Stone, sand and gravel sales decreased $2.8 million on 9% lower average prices and 1% lower shipments.
Cost of products sold for the three-month period decreased $600,000 from the prior fiscal year. Stone, sand and gravel unit costs decreased 8% from the prior fiscal period due to lower production costs. Selling, general and administrative expense decreased $500,000 from the prior fiscal period.
Aggregate operating profit for FY2010 was $13.8 million, a decrease of $20.4 million from the prior year. Lower shipments and sales prices reduced operating profit approximately $27 million. The effect of lower shipments and sales prices was offset in part by lower production costs.
Total segment sales for FY2010 were $164.9 million compared with $237.5 million for the prior fiscal year. Stone, sand and gravel sales decreased $43.2 million on 3% lower average prices and 31% lower shipments.
Cost of products sold decreased $54.6 million from the prior fiscal year primarily due to lower shipments. Stone, sand and gravel unit costs increased 3% from the prior fiscal year as the effect of lower shipments was offset in part by approximately $16 million lower production costs.
Selling, general and administrative expense for FY2010 decreased $3 million from the prior year. The decrease was primarily due to lower overall expenses, including wages and benefits, marketing, travel and outside service expenses.
Other income decreased $5.5 million. This includes a gain of $5 million in FY2009 from the sale of real estate associated with aggregate operations in north Texas.