Texas Industries 1Q Profit Slides 84 Percent

DALLAS (AP) — Texas Industries Inc., which supplies gravel and cement, said Thursday weak demand for construction services combined with higher expenses slashed its fiscal 2010 first-quarter earnings by 84 percent.

However, the results still beat Wall Street expectations and shares rose 25 cents to $44.50 in late afternoon trading.

For the three months ended Aug. 31, profit declined to $1.7 million, or 6 cents per share, compared with $10.7 million, or 38 cents per share, in the year-earlier period. Last year's results included after-tax income from petroleum lease bonus payments of 10 cents per share.

Analysts polled by Thomson Reuters expected, on average, a loss of 6 cents per share.

Sales during the quarter decreased to $184 million from $256.4 million in the year-earlier quarter, fractionally better than analyst expectations for $183.2 million.

CEO Mel Brekhus credited improved cash gross margins, which rose despite major products shipments falling as much as 35 percent, on the stronger-than-expected profit.