France: Lafarge has received Euro850m from the sale of its European and South American gypsum assets to Belgium's Etex Group. Lafarge will retain a 20% interest in the new partnership. The new entity created by the acquisition will have an annual revenue of around Euro1bn, according to Etex.
Eagle Materials reports gypsum results
US: Eagle Materials Inc. has reported its fiscal results for the second quarter (ending 30 September 2011) of the 2012 financial year. These show total revenues of USD134.8m and net earnings of USD6m. Revenues increased by 2% from the same period of the prior fiscal year, reflecting improved sales volumes across most of its business lines. Operating earnings were down by 6% due primarily to higher raw material costs in its gypsum wallboard segment.
Eagle Materials' Gypsum Wallboard and Paperboard division's second quarter operating earnings of USD1.5m were down by 71% compared to the same quarter of the 2011 fiscal year. The Gypsum Wallboard and Paperboard sector's revenues for the second fiscal quarter totalled USD72.3m, a 2% increase from the same quarter a year ago. The revenue increase reflects higher wallboard sales volumes and higher paperboard sales prices, offset by lower gypsum wallboard average net sales prices. The average gypsum wallboard net sales price for the quarter was USD92.09/MSF, 4% less than the same quarter of the 2011 fiscal year. The gypsum wallboard sales volume for the quarter of 403MMSF represents a 2% increase.
Etex/Lafarge deal gets European go-ahead
Europe/South America: The Belgian building-material company Etex Group has received approval from the European Commission (EC) to buy the European and South American gypsum activities of French cement group Lafarge for over Euro1bn (USD1.4bn). The EC ruled that the transaction would not significantly impede effective competition.
The activities, which generated Euro895m in revenue for Lafarge in 2010, will be incorporated into a new entity, in which Lafarge will hold a 20% stake. The divestment is in line with Lafarge's strategy to reduce its debt by Euro2bn in 2011.
Temple Inland results for third quarter
US: Temple Inland, soon to be owned by International Paper, has released fiscal results for the third quarter of 2011. These show that gypsum wallboard volumes and revenues were down compared to the second quarter of 2011. Revenues were down from USD37m in the second quarter to USD34m and output volumes declined from 299MMSF to 270MMSF. Gross pricing increased by approximately USD2/MMSF between the two quarters.
