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March 30, 2006 – Dallas, Texas - Texas Industries, Inc. (NYSE-TXI) today reported net income from continuing operations of $11.3 million ($.47 per share) for the quarter ended February 28, 2006. Net income from continuing operations for the same period of a year ago was $1.5 million ($.06 per share).
"TXI's margins are regaining their two-year trend of expansion after being compressed by last fall's dramatic spike in energy costs," stated Mel Brekhus, Chief Executive Officer. "Cement price increases announced in January have begun to positively impact margins. As lower priced contracts roll off in the coming months, we expect realized prices to continue their climb. Energy costs declined after the first of the year but remain above last year's levels."
Net sales for the quarter of $217 million were 20% higher than last year. Compared to last year's quarter, realized cement, aggregate and ready-mix concrete prices increased 20%, 14% and 16%, respectively. Likewise, shipments of cement, aggregate and ready-mix concrete increased 3%, 1% and 8%.
Selling, general and administrative expenses increased $3 million compared to last year as a result of incentive-related costs. Interest expense for the third quarter was up relative to a year ago due solely to the method required to allocate interest expense in last year's quarter to steel operations.
"Construction activity in the Texas and California regions remains solid, providing a favorable environment for growth," continued Brekhus. "The expansion and modernization of TXI's California cement plant is well underway. This summer, we also expect to see the initial benefits from projects that will incrementally increase production at our North Texas cement plant."
A teleconference will be held today, March 30, 2006 at 1:00 p.m. Central Time to further discuss third quarter results. A real-time webcast of the conference is available by logging on to TXI's website at www.txi.com.
Certain statements contained in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed or implied by such forward looking statements. Potential risks and uncertainties include, but are not limited to, the impact of competitive pressures and changing economic and financial conditions on the Company's business, construction activity in the Company's markets, abnormal periods of inclement weather, unexpected periods of equipment downtime, changes in costs of raw materials, fuel and energy, the impact of environmental laws and other regulations which are more fully described in the Company's Annual Report on SEC Form 10-K.
TXI is the largest producer of cement in Texas and a major cement producer in California. TXI is also a major supplier of construction aggregates, ready-mix concrete and concrete products.
CONTACT INFORMATION:
D. Randall Jones
Vice President Corporate Communications and Government Affairs of Texas Industries, Inc., +1-972-647-6701
