Chaparral spinoff gives TXI mixed results

Chaparral spinoff gives TXI mixed results

Texas Industries Inc (TXI), a major producer of building materials, reported its net sales increased 13 percent due in large to strong cement prices but its profits took a huge hit due to its spinoff of Chaparral steel. The spinoff cost the company $100 million. Backing out the spinoff, per-share profits increased about 74 percent. Net sales were $241’000 for the quarter ended August 31, 2005, up from $209’073 for the same quarter last year. The company, however, reported a net loss of $60 million, or $2.63 per share, compared to a net gain of $ 7.5 million, or $3.22 per share, for the same quarter last year. 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. Chaparral makes a wide variety of products including structural beams, specialty bar and piling products at its locations in Texas and Virginia.