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Eagle Results Show Cement Demand Strong in U.S.

November 14, 2007
The second-quarter earnings report of Dallas-based Eagle Materials Inc. indicates that U.S. demand for cement continues to exceed domestic producers’ capacity to fill it.

“Demand for cement in the U.S. remains at high levels requiring approximately 20 percent of total U.S. cement needs to be met by foreign imports,” the company said in a press release. “Cement demand in some U.S. regions has been negatively impacted by the residential slowdown; however, underlying cement demand in all four of our regional markets remains at high levels. Due to this strength in our cement markets, we expect fiscal 2008 to be our 22nd consecutive year of selling out our four cement plants.”

Eagle Materials produces cement, concrete and aggregates for the construction industry, as well as gypsum wallboard and recycled paperboard.

Eagle reported second-quarter cement revenues of $101.1 million, a 10 percent increase of its second-quarter 2006 earnings, and the company’s highest-ever cement revenues for a single quarter. The company’s second-quarter sales of cement and aggregates, however, totaled $24.8 million, down 11 percent compared to the same period in 2006.

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