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Txi Loss $23.7 Million For Quarter


Texas Industries reported a net loss of $23.7 million for the quarter that ended Aug. 31

Texas Industries reported a net loss of $23.7 million for the quarter that ended Aug. 31. These results included an after-tax refinancing charge of $18 million. Net income for the quarter ended Aug. 31, 2009, was $1.7 million.

"Conditions in our markets remain challenging," says TXI CEO Mel Brekhus. "We continue to focus on meeting market demand as cost effectively as possible. More strategically, we look forward to resuming construction of TXI's central Texas cement plant expansion later this fall.

"The company's recent refinancing enhances our financial flexibility by improving our liquidity and extending the maturity of our long-term debt. We ended the quarter with $162.4 million cash and the ability to borrow $90 million on our credit facility without incurring any maintenance covenants."

The following is a summary of operating results for our business segments and certain other operating information related to our principal products.

Aggregate operating profit for the three-month period was $5.1 million, a decrease of $3.5 million from the prior year period. Lower sales prices offset in part by higher shipments reduced operating profit approximately $2 million.

Total segment sales for the three-month period ended Aug. 31 were $50 million, compared to $50.1 million for the prior year period. Stone, sand and gravel sales decreased $1.2 million from the prior year on 9% lower average prices and 5% higher shipments.

Cost of products sold for the three-month period increased $4.3 million from the prior year, primarily due to higher shipments. Overall stone, sand and gravel unit costs increased 3% from the prior year chiefly due to higher repair and maintenance costs.

Selling, general and administrative expense for the three-month period increased $400,000 from the prior year, primarily due to higher provisions for bad debts.

Other income for the three-month period increased $1.2 million from the prior year due to higher gains from routine sales of surplus operating assets.

Cement operating profit for the three-month period was $4 million, a decrease of $8.4 million from the prior year period. Lower shipments and sales prices reduced operating profit approximately $8 million.

Total segment sales for the three-month period ended Aug. 31, were $76.4 million compared with $85.2 million for the prior year period.

Cement sales decreased $10.8 million from the prior year period as construction activity has remained at low levels in both Texas and California markets. The Texas market accounted for approximately 70% of cement sales in the current period, compared to 71% in the prior year. Shipments decreased 8% in Texas and increased 4% in California. Average cement prices decreased 8% in Texas and 13% in California.