Eagle Materials reported record revenues of $332.7 million, up 1% with earnings before income taxes of $89.4 million, up 109% in its second quarter financial results for 2017.
Net earnings were $60.2 million, up 102% and net earnings per diluted share of $1.25 were up 112%.
Eagle’s construction products and building materials businesses performed well during the quarter, with the cement business reporting record second quarter operating earnings of $50.7 million.
Second quarter cash flow from operations improved 22% and was used to fund capital improvements, pay dividends, reduce debt and repurchase shares.
Eagle entered into a definitive agreement with a subsidiary of Cemex to purchase its Fairborn, Ohio cement plant and related assets. The purchase price is $400 million, subject to customary post-closing adjustments. Eagle expects that the acquisition will increase its US annual cement capacity by approximately 20% to nearly 6 million tons.
The transaction is expected to close in the fourth quarter of calendar 2016, or shortly thereafter.
Eagle intends to finance the acquisition through a combination of cash on hand and borrowings under its existing bank credit facility.
Concrete and Aggregates reported revenues for the second quarter of $38.8 million, an increase of 7%. Second quarter operating earnings were $4.8 million, a 25% improvement from the same quarter a year ago, reflecting improved aggregates sales volumes and improved concrete and aggregates sales prices.