Operating earnings from Cement for the second quarter were $57.5 million, 2% below the same quarter a year ago. The earnings decline was primarily due to lower sales volume at our Texas cement facility and higher freight costs.
Concrete and Aggregates revenue for the second quarter was $39.2 million, a decrease of 9%. Second quarter operating earnings were $4.1 million, a 27% decline, reflecting lower sales volume partially offset by improved pricing. Our primary concrete and aggregates markets experienced heavier rainfall than typical during the quarter which hampered their ability to move product.
Light Materials: Gypsum Wallboard and Paperboard
Revenue in the Light Materials sector, which includes Gypsum Wallboard and Paperboard, increased 3% to $155.2 million. The improvement reflects higher wallboard net sales prices partially offset by lower wallboard sales volume. The average Gypsum Wallboard net sales price for the second quarter of fiscal 2019 was $165.01 per MSF, a 7% improvement. Sequentially, higher freight costs during the quarter affected the net sales price by nearly $1 per MSF. Gypsum Wallboard sales volume was 629 million square feet (MMSF), down approximately 3%, reflecting the disruption from Hurricane Florence in our southeastern markets as well as the timing ofpre-buy activity prior to ourmid-July price increase that pulled shipments forward into the first quarter of the fiscal year.
The average Paperboard net sales price this quarter was $508.17 per ton, down 9%. Paperboard sales volume for the quarter was flat with the prior year as the papermill remains in asold-out position.
Operating earnings were $54.3 million in the sector, an increase of 18%, reflecting improved wallboard net sales prices and lower operating costs. The reduced operating costs primarily reflected lower recycled fiber costs during the quarter.
Oil and Gas Proppants
Revenue in the Oil and Gas Proppants segment was $19.1 million, a decline of 13%, reflecting lower net sales prices partially offset by a 2% increase in frac sand sales volume. Our improved sales volume reflected sales activity from our new drying plant in Illinois, which was operational for the full quarter. During the quarter, pricing for our frac sand came under pressure as overall frac sand demand declined, primarily in the Permian Basin, where oil pipeline capacity limitations have reduced completion activity leading to excess frac sand in the marketplace. It is unclear how long these market conditions will persist. The second quarter’s operating loss of $7.9 million included $9.4 million of depreciation, depletion and amortization.
Details of Financial Results
We conduct one of our cement plant operations through a 50/50 joint venture, Texas Lehigh Cement Company LP (the Joint Venture). We use the equity method of accounting for our 50% interest in the Joint Venture. For segment reporting purposes only, we proportionately consolidate our 50% share of the Joint Venture’s revenue and operating earnings, which is consistent with the way management organizes the segments within Eagle for making operating decisions and assessing performance.
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