Earnings rise at Texas Industries
Mel Brekhus, CEO for the building products company, said results improved for the company’s consumer products segments as well as its other commercial divisions. Favorable weather conditions and improved margins helped boost earnings, he said.
“In fact, operating profit for the aggregate segment during the first nine months of the current fiscal year has increased by 35 percent compared to the same period last year and operating profit for the consumer products segment has increased by 80 percent,” Brekhus said. Shipments of ready-mix concrete rose 16 percent in the quarter, the company said in a statement.
So why such positive results while many building materials providers are feeling the effects of a lagging housing market? One primary reason could be that Texas Industries operations are centered in Texas, and “the Texas economy continues to generate a solid overall level of construction activity,” the company said in a statement. Additionally, the company said while in California demand has declined, imports also have declined and prices have increased in both markets.
The company is currently expanding its manufacturing capacity in California, with a new cmeent plant slated to open in June 2008. An expansion project in Central Texas and a newly opened plant in North Texas also have contributed to company’s expansion efforts.