TXI CHAPARRAL HEADLINESSteel Producers /
TXI Chaparral
TXI Reports 3rd Quarter Results, Still Looking to Spin off Steel Operations
Mar. 25, 2005 Texas Industries, Inc. reported net income of $16.0 million for the quarter ended February 28, 2005.
The $16.0 million ($0.68 per share) net income compares to $20.9 million ($0.92 per share) for the same period a year ago. Year-ago results included a $20.5 million ($0.90 per share) after-tax gain on the sale of brick assets.
"Steel returns continue to be quite attractive," stated Mel Brekhus, President and CEO. "After a difficult winter quarter, cement, aggregate and concrete operations should see a significant recovery this spring. The spin-off of TXI's steel operations announced in December remains on schedule for completion this summer."
Steel operating profit of $34.8 million compared to $11.6 million in last year's quarter. Margin improvement more than offset a 30% decline in shipments. The shipment reduction reflects the difference between strong customer buying a year ago to build inventories and lower purchases by customers during the recent winter quarter to reduce inventories. Nonresidential construction activity, the primary driver of demand for structural steel products, has remained low but stable for well over a year.
Cement, aggregate and concrete operating profit of $13.4 million was equal to last year's quarter after excluding last year's gain from the sale of brick assets. Realized prices for major products increased by 4 to 10%. Other income in the current quarter, primarily from real estate gains, equaled $6 million. However, abnormally wet weather in the Texas and California markets combined with cement plant downtime to offset the positive impact of higher prices and other income.
TXI is a leading supplier of building materials, primarily cement and structural steel. Structural steel products are distributed throughout North America.