TXI loses $23.7 million in first quarter

Selling, general and administrative expense for the three-month period ended August 31, 2010 increased $0.1 million from the prior year period. The increase was primarily due to higher engineering and maintenance expense which was offset in part by lower provisions for bad debts and defined benefit plan expense.

Other income for the three-month period ended August 31, 2010 increased $0.7 million from the prior year period. Other income includes a gain of $1.7 million in the three-month period ended August 31, 2010 from the sale of emissions credits associated with our Crestmore cement plant in Riverside, California which was offset in part by lower gains from routine sales of surplus operating assets.

Aggregate Operations

	Three months ended August 31,
In thousands except per unit	2010	2009

Operating Results
Total stone, sand and gravel sales	$ 26,593	$ 27,794
Total other sales and delivery fees	23,377	22,307
Total segment sales	49,970	50,101
Cost of products sold	43,410	39,155
Gross profit	6,560	10,946
Selling, general and administrative	(3,059)	(2,705)
Other income	1,633	398
Operating Profit	$ 5,134	$ 8,639

Stone, sand and gravel
Shipments (tons)	3,584	3,423
Prices ($/ton)	$7.42	$8.12
Cost of sales ($/ton)	$6.45	$6.28

Aggregate operating profit for the three-month period ended August 31, 2010 was $5.1 million, a decrease of $3.5 million from the prior year period. Lower sales prices offset in part by higher shipments reduced operating profit approximately $2 million.

Total segment sales for the three-month period ended August 31, 2010 were $50.0 million compared to $50.1 million for the prior year period. Stone, sand and gravel sales decreased $1.2 million from the prior year period on 9% lower average prices and 5% higher shipments.

Cost of products sold for the three-month period ended August 31, 2010 increased $4.3 million from the prior year period primarily due to higher shipments. Overall stone, sand and gravel unit costs increased 3% from the prior year period primarily due to higher repair and maintenance costs.

Selling, general and administrative expense for the three-month period ended August 31, 2010 increased $0.4 million from the prior year period primarily due to higher provisions for bad debts.

Other income for the three-month period ended August 31, 2010 increased $1.2 million from the prior year period primarily due to higher gains from routine sales of surplus operating assets.

Consumer Products Operations

	Three months ended August 31,
In thousands except per unit	2010	2009

Operating Results
Total ready-mix concrete sales	$ 52,106	$ 54,053
Total other sales and delivery fees	14,372	15,485
Total segment sales	66,478	69,538
Cost of products sold	63,249	61,716
Gross profit	3,229	7,822
Selling, general and administrative	(2,676)	(3,204)
Other income	198	133
Operating Profit	$ 751	$ 4,751

Ready-mix concrete
Shipments (cubic yards)	669	612
Prices ($/cubic yard)	$77.83	$88.46
Cost of sales ($/cubic yard)	$76.20	$79.91

Consumer products operating profit for the three-month period ended August 31, 2010 was $0.8 million, a decrease of $4.0 million from the prior year period. Lower sales prices offset in part by higher shipments reduced operating profit approximately $6 million.