Heavy construction materials maker Texas Industries, Inc. (TXI) reported Wednesday a loss for the second quarter that widened from last year, due primarily to a charge and lower margins that more than offset net sales growth and a decline in expenses. Loss per share for the quarter also came in wider than analysts' expectations, while quarterly sales topped their estimates by a whisker.
"I am pleased with the progress we have made on our cost cutting and efficiency initiatives. Our total headcount is down 11% compared to August 31, 2011. Projects are underway to improve efficiencies throughout our operations and our efforts to reduce costs through improved purchasing practices are showing good results," CEO Mel Brekhus said in a statement.
The Dallas, Texas-based company reported a net loss of $21.04 million or $0.75 per share for the second quarter, wider than $11.20 million or $0.40 per share in the prior-year quarter.
The results for the latest quarter included a one-time after-tax charge of $3.2 million or $0.11 per share related to cost cutting and efficiency initiatives announced in September. Additionally, the company said the reduction of the tax rate, compared to a year ago, increased the loss by $0.30 per share.
On average, 11 analysts polled by Thomson Reuters expected the company to report a loss of $0.61 per share for the second quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter increased to $156.07 million from $148.11 million in the same quarter last year, and topped seven Wall Street analysts' consensus estimate of $154.88 million by a whisker.
Total cement segment sales were $77.23 million for the quarter, higher than $68.58 million a year ago. Cement shipments rose to 884 tons from 784 tons last year, while prices edged down to $78.07 per ton from last year's $78.49 per ton.
Total aggregate (stone, sand and gravel) segment sales decreased to $39.97 million from $41.08 million in the previous year. Shipments dropped to 2,818 tons from 3,026 tons a year ago, and prices also edged down to $7.45 per ton from $7.48 per ton last year.
Total consumer products (ready-mix concrete) segment sales increased to $58.12 million from $56.29 million a year ago on higher shipments, which rose to 587 cubic yards from 575 cubic yards. Prices also grew to $75.85 per cubic yard from $75.45 last year.
Total consolidated cost of products sold increased to $153.33 million from $136.04 million a year ago, leading to a gross profit drop to $2.75 million from $12.07 million a year ago.
Selling, general and administrative for the quarter decreased to $13.88 million from $18.54 million in the prior-year quarter.
"There is obviously much more work to be accomplished in order to reach our goals of a 15% gross profit margin and SG&A expense at 8% of sales by the end of fiscal year 2013 but we are off to a very good start," Brekhus added.
TXI closed Wednesday's regular trading session at $31.02, down $0.52 or 1.65% on a volume of 0.16 million shares.
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