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Texas Industries (TXI) |
| Revision as of 18:34, September 10, 2008 (edit) Pomeroyster - Sr. Director (Talk | contribs) (→Trends & Forces) ← Previous diff |
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| ==Trends & Forces== | ==Trends & Forces== | ||
| - | ===increasing efficiency/spinoff=== | + | ===New Plant Construction Continues Focus on Improving Efficiency=== |
| + | In May 2008, TXI completed its expanded and modernized Oro Grande, California cement plant. The plant is an advanced dry process facility designed to efficiently produce approximately 2.3 million tons of cement annually, as compared to less efficient, previously existing 1.3 million tons of production capacity.<ref>[http://www.sec.gov/Archives/edgar/data/97472/000119312508149883/d10k.htm SEC, Texas Industries 10-K, pg. 1]</ref> The company expects to become the second largest producer of cement in southern California because of this increase. | ||
| + | Similarly, in October 2007 TXI commenced construction of a project to expand the capacity of its Hunter, Texas cement plant by approximately 1.4 million tons, on top of the plant's current capacity of 900,000.<ref>[http://www.sec.gov/Archives/edgar/data/97472/000119312508149883/d10k.htm SEC, Texas Industries 10-K, pg. 1]</ref> When completed in 2010, the Hunter plant will be a modern, low cost facility, similar to the Midlothian, TX and Oro Grande dry process facilities. In 2005, also as part of a drive for efficiency, TXI spun off 100% of Chaparral Steel Company.<ref>[http://www.sec.gov/Archives/edgar/data/97472/000119312508149883/d10k.htm SEC, Texas Industries 10-K, pg. 1]</ref> | ||
| ===low operating costs through rail and proximity=== | ===low operating costs through rail and proximity=== | ||
Revision as of 19:06, September 10, 2008
Business Overview
Texas Industries operates in the United States; in 2008 it shipped 5.0 million tons of finished cement, 21.9 million tons of natural aggregates, 1.6 million cubic yards of lightweight aggregates and 3.8 million cubic yards of ready-mix concrete from 85 manufacturing facilities in six states.[1] Destination states include Texas, California, Louisiana, Oklahoma, Nevada, and Arizona.[2] The Texas market area accounted for approximately 82% of TXI's net sales in fiscal year 2008 and 78% of net sales in fiscal year 2007.[3]
TXI breaks down its business by operating segment. Net sales for FY2008 are broken down by operating segment as follows:
- 40.4% of net sales originated from the Cement segment, which produces and sells gray portland cement, as well as specialty cements such as masonry cement and oil well cement.
- 24.1% of net sales originated from the Aggregates segment, which produces and sells stone, sand and gravel as its principal products, as well as "light aggregates" such as expanded shale and clay aggregates.
- 35.5% of net sales originated from the Consumer Products segment, which produces and sells ready-mix concrete as the principal product, as well as packaged concrete and related products.
Net Sales and Operating Profits
Texas Industries' total net sales increased 3.27% in FY2008 following a 5.54% increase in FY2007. Operating profits changed by -21.1% and 26.5% over the same time periods.
| Net Sales By Product (thousands of dollars) | 2006 | 2007 | 2008 |
| Cement | $374,322 | $403,493 | $388,136 |
| Aggregates | $114,692 | $124,491 | $127,399 |
| Ready-mix Concrete | $264,967 | $277,725 | $310,170 |
| Other | $189,941 | $190,541 | $203,149 |
| Total | $943,922 | $996,250 | $1,028,854 |
| Net Sales Growth | - | - | - |
| Cement | - | 7.79% | -3.81% |
| Aggregates | - | 8.54% | 2.33% |
| Ready-mix Concrete | - | 4.81% | 11.7% |
| Other | - | .32% | 6.62% |
| Total | - | 5.54% | 3.27% |
Trends & Forces
New Plant Construction Continues Focus on Improving Efficiency
In May 2008, TXI completed its expanded and modernized Oro Grande, California cement plant. The plant is an advanced dry process facility designed to efficiently produce approximately 2.3 million tons of cement annually, as compared to less efficient, previously existing 1.3 million tons of production capacity.[5] The company expects to become the second largest producer of cement in southern California because of this increase. Similarly, in October 2007 TXI commenced construction of a project to expand the capacity of its Hunter, Texas cement plant by approximately 1.4 million tons, on top of the plant's current capacity of 900,000.[6] When completed in 2010, the Hunter plant will be a modern, low cost facility, similar to the Midlothian, TX and Oro Grande dry process facilities. In 2005, also as part of a drive for efficiency, TXI spun off 100% of Chaparral Steel Company.[7]
low operating costs through rail and proximity
market leaders in cali and texas
construction cycles/funding matters
Competition
All of the product markets in which TXI participates are highly competitive, but each market has its own set of competitors. Market competitors break down as follows.
Cement
- Cemex S.A.B. de C.V. (CX)
- Holcim Ltd.
Aggregates
- Vulcan Materials Company (VMC)
- Martin Marietta Materials (MLM)
- Hanson Aggregates
Ready-Mix Concrete
- US Concrete
- Campbell Ready Mix
- Lattimore Materials
References
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