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Eagle Materials Inc. F1Q09 (Quarter End 06/30/2008) Earnings Call Transcript

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2008-07-22 16:52:10.0

Tags: Eagle Materials Inc.

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Garrick Schmoies – Longbow Research.

Garrick Schmoies – Longbow Research

I was just wondering if first off you can quantify the maintenance expenses at the [inaudible] cement plant.

Steven R. Rowley

Yes, that was of the $2 million plus or minus range.

Garrick Schmoies – Longbow Research

Steve, could you talk a little bit about your confidence in your ability to sell out your cement plants for a 23rd straight year this year especially given volume weakness and a cutback on imports and the weather issues you had in Illinois here in the last quarter?

Steven R. Rowley

I feel confident in three of the plants that we’ll be able to achieve it but the very slow start in the Midwest is going to be difficult to overcome although we continue to work at ways to make that happen.

Garrick Schmoies – Longbow Research

And are you concerned at all about potential price weakness?

Steven R. Rowley

No, as we continue to work our way through that volume clearly, our first and foremost way to move the volume is in a matter that’s not disrupted to pricing.

Operator

Your next question comes from Glenn Wortmann – Sidoti & Co.

Glenn Wortmann – Sidoti & Co.

Just excluding the weather issues in Illinois, how much of the volume impact do you think was from lack of demand?

Steven R. Rowley

That’s a little hard to understand. The state of Illinois has had some budgeting issues that they have just been unable to pass a capital plan in Springfield. So, some of it is associated with that, some of it is associated with the weather and it’s a little difficult to tell which is which.

Glenn Wortmann – Sidoti & Co.

Then just as far as the wallboard price increases can you comment on if you see this price increase sticking unlike the last ones and where you see prices going over the next few months to a year or so?

Steven R. Rowley

The June 23 price increase is holding very firm. It’s a little too early to know about the August price increase but the June 23 is holding firm and we’re looking forward to see what happens with the August price increase.

Glenn Wortmann – Sidoti & Co.

Then just as far as the industry dynamics of wallboard, just on a national basis do you know where the current capacity is and how much capacity is expected to come online over the next year or so.

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