Eagle Materials Inc. reported financial results for the first quarter of fiscal 2006 ended June 30, 2005 and raised its annual earnings guidance. Eagle produces and distributes gypsum wallboard, cement, recycled paperboard and concrete and aggregates.
For the quarter, revenues and net earnings were $205 million and $35 million, respectively. Revenues increased 36 percent over the prior year first quarter and net earnings increased 50 percent over the same period last year.
The company also expressed confidence on the future. In its quarterly report Eagle noted according to the U.S. Census Bureau, total construction spending during May 2005 was estimated at a seasonally adjusted annual rate of $1.1 trillion, 7 percent above the May 2004 estimate.
The Gypsum Association reported about 17.8 billion square feet of wallboard were shipped in the first six months of calendar 2005, a 4.4 percent increase over the prior record year. For calendar year 2005, the company expects Wallboard demand to remain strong and supply to be tight (with 95 percent+ industry capacity utilization) as a result of continued high levels of activity in residential construction and increasing repair/remodel and commercial construction activity. Wallboard pricing remains strong and a 15 percent price increase was implemented on June 27, 2005 in all of our wallboard markets. Also, national demand for cement remains at record levels outpacing last year's consumption by over 6 percent through May 2005 according to the U.S. Geological Survey with imports projected to fulfill over 25 percent of the U.S. construction industry demand this year. Low inventories and strong demand continue to put upward pressure on cement pricing. We implemented a $5 price increase on April 1, 2005, in most of our cement markets.