logo
Plus   Neg
Share
Email

Eagle Materials Commences Strategic Review; To Buy Back Additional Shares

Eagle Materials Inc. (EXP) said Thursday that its board of directors and management team have commenced a strategic review of its portfolio of businesses: heavy materials, light materials, and oil and gas proppants, to enhance shareholder value.

As part of the portfolio review, Eagle Materials will consider the full range of options available, including separating the businesses and evaluating potential transactions. The company may also engage with third parties that could be participants in certain potential transactions.

Goldman Sachs & Co. LLC is serving as financial advisor to Eagle, while Wachtell, Lipton, Rosen & Katz is serving as the company's legal counsel in this review.

For the fourth quarter ended March 31, 2019, Eagle Materials forecast revenues in a range of $283 million to $285 million, reported net loss of $2.84 to $2.80 per share, and adjusted earnings in a range of $0.85 to $0.89 per share. The outlook is based on preliminary financial results.

Eagle Materials also said that its board has authorized the repurchase of an additional 10 million outstanding shares of common stock.

This increase is in addition to the remaining authorized shares under the existing share repurchase authorization. The total new authorization plus remaining authorization is about 10.7 million shares, representing nearly 25 percent of the company shares outstanding.

In addition, Eagle Materials announced the planned succession of Mike Nicolais, currently Vice-Chairman of the Eagle Materials Board, to Chairman of the Board.
Nicolais succeeds Rick Stewart, who will continue to serve as a director.

Nicolais currently serves as Vice Chairman at Highlander Partners, a Dallas-based private equity firm. From 2001 to 2003, he served as a partner in the private investment firm of Olivhan Investments, followed by being named managing director at Stephens, Inc.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
U.S. President Donald Trump said he discussed with Apple Inc.'s CEO Tim Cook about the impact of the U.S. tariffs on goods imported from China as well as the competition for Apple from South Korea's Samsung Electronics Co. Cook reportedly warned Trump that the tariffs on Chinese imports would hurt Apple's business as the tech giant relies heavily on manufacturing in China. Just Egg, a plant-based egg alternative, will be available in 2,100 stores owned by grocery chain Kroger Co. later this month. The product launch comes as plant-based meat and egg alternatives gain traction in the country. Just Egg, a product of California-based food technology company Just Inc., will be available at Kroger-owned stores, including Kroger, Fred Meyer and Ralphs. Boeing has delivered the first 787-10 Dreamliner to Vietnam Airlines, the flag carrier of Vietnam, as part of the eight 787-10 Dreamliner airplanes to be delivered on lease through Air Lease. Vietnam Airlines said the 787-10 Dreamliner, claimed by Boeing to be the most fuel-efficient twin-aisle airplane in the industry, will help it raise the customer experience on the Hanoi to Ho Chi Minh route.