TXI increases sales

It's looking good for Texas Industries Inc. The company is reporting 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," says 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%. "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." With operations in strategic markets, the nation's 16th largest aggregates producer is sitting pretty. Your comment?