Texas Industries 8-K Txi Reports Third Quarter Results

TXI REPORTS THIRD QUARTER RESULTS

March 27, 2008 - Dallas, Texas - Texas Industries, Inc. (TXI-NYSE) today reported net income for the quarter ended February 29, 2008 of $14.6 million ($.53 per share). For the same period ended February 28, 2007, net income equaled $12.7 million ($.50 per share).

“The commissioning of TXI’s new cement capacity in California is under way and we expect the plant to be fully operational in June of 2008,” stated Mel Brekhus, Chief Executive Officer. “Construction of TXI’s Central Texas cement expansion project is also ramping up and we look forward to the commissioning of that new capacity in about two years. These two projects and the incremental addition of production at our North Texas plant are expected to increase TXI’s total annual cement capacity from today’s 5 million tons to almost 8 million tons over the next several years.”

“Cement segment operating profit - excluding short-term items - was approximately even with that in last year’s quarter,” continued Brekhus. “Once the new cement capacity in California is fully operational, production efficiencies in California should be greatly enhanced. Operating results for the aggregate and consumer products business segments improved during the third quarter, reflecting both better weather and our efforts to improve efficiencies and margins. In fact, operating profit for the aggregate segment during the first nine months of the current fiscal year has increased by 35% compared to the same period last year and operating profit for the consumer products segment has increased by 80%.”

The Texas economy continues to generate a solid overall level of construction activity. Cement consumption has remained at approximately 17 million tons for the last two years, well above the state’s total production capacity of 12 million tons. In the California region, reductions in cement demand continue to be offset by declining imports. Cement price increases have been announced in both markets and aggregate product pricing trends continue to be positive.

Net sales for the quarter increased 6% over those of a year ago. Shipments of cement, aggregates and ready-mix concrete improved by 2%, 11% and 16%, respectively. In last year’s quarter, extremely wet winter weather hindered shipments in Texas. Average realized prices for aggregates and ready-mix concrete increased by 3% and 5%. Average realized prices for the combined cement operations declined by 5% due to a shift in the mix of cement products and markets. Average realized cement prices should rise as we begin to benefit from announced price increases and as we begin to sell more cement in California.

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A teleconference will be held today, March 27, 2008 at 1:00 PM Central Daylight Time to further discuss Third Quarter results. A real-time webcast of the conference is available by logging on to TXI’s website at www.txi.com.

Certain statements contained in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed or implied by such forward looking statements. Potential risks and uncertainties include, but are not limited to, the impact of competitive pressures and changing economic and financial conditions on the Company’s business, construction activity in the Company’s markets, abnormal periods of inclement weather, unexpected periods of equipment downtime, changes in costs of raw materials, fuel and energy, the impact of environmental laws and other regulations and risks and uncertainties described in the Company’s reports on SEC Forms 10-K, 10-Q and 8-K.

TXI is the largest producer of cement in Texas and a major cement producer in California. TXI is also a major supplier of construction aggregates, ready-mix concrete and concrete products.

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2

CONSOLIDATED STATEMENTS OF OPERATIONS

TEXAS INDUSTRIES, INC. AND SUBSIDIARIES

	Three months ended						Nine months ended
	February 29,			February 28,			February 29,			February 28,
In thousands except per share	2008			2007			2008			2007
NET SALES	$	230,535		$	216,771		$	762,462		$	734,255
Cost of products sold		190,980			169,702			616,688			569,097
GROSS PROFIT		39,555			47,069			145,774			165,158
Selling, general and administrative		20,717			27,476			63,964			78,681
Interest		--			3,289			--			13,474
Other income		(2,086	)		(3,247	)		(7,781	)		(31,598	)
		18,631			27,518			56,183			60,557
INCOME BEFORE INCOME TAXES		20,924			19,551			89,591			104,601
Income taxes		6,300			6,838			27,738			33,805
NET INCOME	$	14,624		$	12,713		$	61,853		$	70,796
Net income per share
Basic	$	.53		$	.52		$	2.26		$	2.93
Diluted	$	.53		$	.50		$	2.22		$	2.71
Average shares outstanding
Basic		27,398			24,438			27,359			24,133
Diluted		27,810			27,771			27,852			27,629
Cash dividends per share	$	.075		$	.075		$	.225		$	.225
Major product shipments
Cement (tons)		1,142			1,122			3,751			3,749
Stone, sand and gravel (tons)		5,010			4,527			16,424			16,561
Ready-mix concrete (cubic yards)		857			736			2,905			2,695
Major product prices
Cement ($/ton)	$	91.01		$	95.50		$	93.28		$	94.91
Stone, sand and gravel ($/ton)		7.52			7.30			7.36			6.87
Ready-mix concrete ($/cubic yard)		81.26			77.49			80.50			75.19

3

CONSOLIDATED BALANCE SHEETS

TEXAS INDUSTRIES, INC. AND SUBSIDIARIES

	Unaudited February 29,			May 31,
In thousands	2008			2007
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	9,632		$	15,138
Receivables - net		151,708			142,610
Inventories		123,735			121,467
Deferred income taxes and prepaid expenses		22,482			17,621
TOTAL CURRENT ASSETS		307,557			296,836
OTHER ASSETS
Goodwill		60,110			58,395
Real estate and investments		23,834			111,414
Deferred charges and intangibles		11,376			11,369
		95,320			181,178
PROPERTY, PLANT AND EQUIPMENT
Land and land improvements		133,033			132,992
Buildings		40,917			41,485
Machinery and equipment		776,524			752,531
Construction in progress		533,943			362,646
		1,484,417			1,289,654
Less depreciation and depletion		525,274			505,432
		959,143			784,222
	$	1,362,020		$	1,262,236
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	89,895		$	109,749
Accrued interest, wages and other items		42,754			57,891
Current portion of long-term debt		221			1,340
TOTAL CURRENT LIABILITIES		132,870			168,980
LONG-TERM DEBT		344,438			274,416
DEFERRED INCOME TAXES AND OTHER CREDITS		90,274			90,358
SHAREHOLDERS’ EQUITY
Common stock, $1 par value		27,452			27,323
Additional paid-in capital		458,408			448,289
Retained earnings		312,779			257,087
Accumulated other comprehensive loss		(4,201	)		(4,217	)
		794,438			728,482
	$	1,362,020		$	1,262,236

4

CONSOLIDATED STATEMENTS OF CASH FLOWS

TEXAS INDUSTRIES, INC. AND SUBSIDIARIES

	Nine months ended
	February 29,			February 28,
In thousands	2008			2007
OPERATING ACTIVITIES
Net income	$	61,853		$	70,796
Adjustments to reconcile net income to cash provided by operating activities
Gain on asset disposals		(1,196	)		(570	)
Depreciation, depletion and amortization		40,980			33,856
Deferred income taxes		4,654			16,830
Stock-based compensation expense (credit)		(2,688	)		10,268
Excess tax benefits from stock-based compensation		(3,519	)		(1,647	)
Other - net		1,307			1,559
Changes in operating assets and liabilities
Receivables - net		(9,045	)		4,540
Inventories		(2,268	)		(12,259	)
Prepaid expenses		2,206			3,910
Accounts payable and accrued liabilities		(15,967	)		(1,532	)
Net cash provided by operating activities		76,317			125,751
INVESTING ACTIVITIES
Capital expenditures - expansions		(193,160	)		(175,000	)
Capital expenditures - other		(48,520	)		(61,439	)
Proceeds from asset disposals		3,928			961
Purchases of short-term investments		--			(8,500	)
Sales of short-term investments		--			59,000
Investments in life insurance contracts		88,140			(5,288	)
Other - net		218			(125	)
Net cash used by investing activities		(149,394	)		(190,391	)
FINANCING ACTIVITIES
Long-term borrowings		213,000			--
Debt retirements		(144,313	)		(1,285	)
Debt issuance and retirement costs		(1,152	)		(4	)
Stock option exercises		2,678			5,976
Excess tax benefits from stock-based compensation		3,519			1,647
Common dividends paid		(6,161	)		(5,468	)
Net cash provided by financing activities		67,571			866
Decrease in cash and cash equivalents		(5,506	)		(63,774	)
Cash and cash equivalents at beginning of period		15,138			84,139
Cash and cash equivalents at end of period	$	9,632		$	20,365

5

Texas Industries, Inc.
Consolidated Statements of Operations
In $ Thousands

	FY2003			FY2004			FY2005			FY2009			FY2007															FY2008
													Q1			Q2			Q3			Q4			Total			Q1			Q2			Q3			Q4		Total
Shipments
Cement (Thousands of Tons)		4,900			5,298			5,394			5,136			1,388			1,239			1,122			1,325			5,074			1,290			1,319			1,142					3,751
Aggregates (Thousands of Tons)		19,003			22,282			23,616			25,246			6,461			5,573			4,527			5,553			22,114			5,551			5,863			5,010					16,424
Ready-mix (Thousands of Cubic Yards)		3,513			3,562			3,678			3,830			980			979			736			970			3,665			998			1,050			857					2,905
Price
Cement ($ per Ton)		68.90			68.48			75.05			87.14			94.48			94.85			95.50			95.51			95.06			95.69			92.88			91.01					93.27
Aggregates ($ per Ton)		5.55			5.43			5.68			6.08			6.61			6.83			7.30			7.51			7.03			7.17			7.39			7.52					7.36
Ready-mix ($ per Cubic Yard)		57.88			57.94			60.54			69.25			73.90			74.76			77.49			77.81			75.87			80.17			80.19			81.26					80.52
Net Sales		-
Cement		337,624			362,824			404,823			447,594			131,157			117,528			107,143			126,551			482,379			123,423			122,586			103,891					349,900
Aggregates		105,521			120,997			134,220			153,480			42,723			38,066			33,043			41,730			155,562			39,804			43,324			37,699					120,827
Ready-mix		203,349			206,394			222,680			265,254			72,442			73,142			57,007			75,476			278,067			79,990			84,233			69,699					233,922
Other		117,810			116,108			104,847			118,555			34,473			28,196			26,048			31,081			119,798			32,175			31,375			30,155					93,705
Interplant		(100,478	)		(98,353	)		(105,576	)		(121,127	)		(31,478	)		(30,046	)		(23,890	)		(32,992	)		(118,406	)		(32,432	)		(34,750	)		(30,488	)				(97,670	)
Delivery Fees		54,292			59,209			73,809			80,166			22,335			18,946			17,420			20,149			78,850			20,494			21,705			19,579					61,778
Net Sales		718,118			767,179			834,803			943,922			271,652			245,832			216,771			261,995			996,250			263,454			268,473			230,535			-		762,462
Costs and Expenses (Income)
Cost of Products Sold		596,737			637,347			692,414			766,941			205,338			194,057			169,702			191,063			760,160			217,437			208,271			190,980					616,688
Selling, General and Administrative		70,666			74,814			78,434			88,663			21,058			30,147			27,476			29,425			108,106			22,183			21,064			20,717					63,964
Interest		14,827			24,102			23,533			31,155			5,542			4,643			3,289			600			14,074			-			-			-					-
Loss on Debt Retirements and Spin-off Charges					12,302			894			113,247			-			-			26			22			48			-			-			-					-
Other Income		(4,762	)		(40,482	)		(22,727	)		(47,270	)		(3,551	)		(24,800	)		(3,273	)		(5,005	)		(36,629	)		(2,253	)		(3,442	)		(2,086	)				(7,781	)
		677,468			708,083			772,548			952,736			228,387			204,047			197,220			216,105			845,759			237,367			225,893			209,611			-		672,871
Income from Continuing Operations
Before Income Taxes		40,650			59,096			62,255			(8,814	)		43,265			41,785			19,551			45,890			150,491			26,087			42,580			20,924			-		89,591
Income Taxes		13,485			16,819			16,811			(8,225	)		13,834			13,133			6,838			15,779			49,584			8,173			13,265			6,300					27,738
Income from Continuing Operations		27,165			42,277			45,444			(589	)		29,431			28,652			12,713			30,111			100,907			17,914			29,315			14,624			-		61,853
Income (Loss) from Discontinued Operations - net of Income Taxes		(51,362	)		(4,378	)		79,079			8,691															-														-
Income (Loss) before Accounting Change		(24,197	)		37,899			124,523			8,102			29,431			28,652			12,713			30,111			100,907			17,914			29,315			14,624			-		61,853
Cumulative Effect of Accounting Change - net of
Income Taxes		-			(1,551	)		-			-			-			-			-			-			-			-			-			-			-		-
Net Income		(24,197	)		36,348			124,523			8,102			29,431			28,652			12,713			30,111			100,907			17,914			29,315			14,624			-		61,853

6

Texas Industries, Inc.
Consolidated Balance Sheets
In $ Thousands

	5/31/2004		5/31/2005		5/31/2006		8/31/2006		11/30/2006		2/28/2007		5/31/2007		8/31/2007		11/30/2007		2/29/2008
Cash		133,053		251,600		84,139		66,300		83,648		20,365		15,138		5,165		26,216		9,632
Short-term Investments		-		-		50,606		39,122		10,012		-		-		-		-
Accounts Receivable		108,364		117,363		132,849		160,569		129,517		126,527		142,610		160,079		163,990		151,708
Inventories		89,373		83,291		102,052		101,330		100,929		114,751		121,467		112,517		112,824		123,735
Deferred Income Taxes and Prepaid Expenses		31,553		28,754		33,599		26,820		15,475		18,779		17,621		13,047		19,785		22,482
Total Current Assets		362,343		481,008		403,245		394,141		339,581		280,422		296,836		290,808		322,815		307,557
Goodwill		61,307		61,307		58,395		58,395		58,395		58,395		58,395		58,395		60,110		60,110
Real Estate and Investments		42,430		100,200		125,913		107,604		131,513		132,884		111,414		112,217		48,037		23,834
Deferred Income Taxes, Intangibles and Other Charges		39,259		27,571		22,706		22,493		22,271		16,097		11,369		12,031		12,097		11,376
Net Assets of Discontinued Operations		798,353		836,100		-		-		-		-		-		-		-		-
		941,349		1,025,178		207,014		188,492		212,179		207,376		181,178		182,643		120,244		95,320
Property, Plant and Equipment		865,133		882,816		953,474		1,015,880		1,098,134		1,184,578		1,289,654		1,366,431		1,442,445		1,484,417
Accumulated Depreciation		452,324		470,163		483,163		492,569		503,070		511,406		505,432		510,881		517,557		525,274
Net Property, Plant and Equipment		412,809		412,653		470,311		523,311		595,064		673,172		784,222		855,550		924,888		959,143
Total Assets		1,716,501		1,918,839		1,080,570		1,105,944		1,146,824		1,160,970		1,262,236		1,329,001		1,367,947		1,362,020
Accounts Payable		53,497		58,022		63,581		69,866		75,557		74,810		109,749		94,516		115,408		89,895
Accrued Interest, Wages and Other Items		38,833		49,449		55,059		44,662		54,371		45,354		57,891		41,710		50,568		42,754
Current Portion of Long Term Debt		699		688		681		680		1,475		1,475		1,340		213		217		221
Total Current Liabilities		93,029		108,159		119,321		115,208		131,403		121,639		168,980		136,439		166,193		132,870
Long Term Debt		598,412		603,126		251,505		251,507		250,358		250,358		274,416		353,585		334,517		344,438
Convertible Subordinated Debentures		199,937		199,937		159,725		159,655		159,655		92,370		-		-		-		-
Deferred Income Taxes and Other Credits		63,139		80,050		76,955		81,204		78,186		87,987		90,358		89,400		89,014		90,274
Shareholders Equity		761,984		927,567		473,064		498,370		527,222		608,616		728,482		749,577		778,223		794,438
Total Liabilities and Shareholders Equity		1,716,501		1,918,839		1,080,570		1,105,944		1,146,824		1,160,970		1,262,236		1,329,001		1,367,947		1,362,020

7

Texas Industries, Inc.
Consolidated Statements of Cash Flows
In $ Thousands

	FY2003			FY2004			FY2005			FY2006			FY2007															FY2008
										Total			Q1			Q2			Q3			Q4			Total			Q1			Q2			Q3			Q4		Total
CONTINUING OPERATIONS
Operating Activities
Income from Continuing Operations		27,165			42,277			45,444			(589	)		29,431			28,652			12,713			30,111			100,907			17,914			29,315			14,624			-		61,853
Adjustments to Reconcile Income from Continuing
Operations to Cash Provided (Used) by
Continuing Operating Activities
Loss on Debt Retirements		-			12,302			-			107,006			-			-			26			22			48			-											-
Loss (Gain) on Asset Disposals		687			(37,997	)		(6,582	)		(34,768	)		(490	)		(49	)		(31	)		(2,347	)		(2,917	)		(455	)		(462	)		(279	)				(1,196	)
Depreciation, Depletion and Amortization		49,196			47,409			46,474			44,955			11,172			11,112			11,572			12,500			46,356			13,318			13,846			13,816					40,980
Deferred Income Taxes (Benefit)		(27,726	)		319			33,811			6,581			3,777			4,734			8,319			(5,476	)		11,354			513			614			3,527					4,654
Other - Net		6,000			5,391			8,889			7,570			(502	)		2,482			8,174			5,252			15,406			(5,146	)		(507	)		753					(4,900	)
Changes in Operating Assets and Liabilities											-															-														-
Receivables Sold		(7,321	)		(72,032	)		-			-			-												-			-											-
Accounts Receivable - Net		(1,258	)		1,052			(8,873	)		(5,060	)		(6,218	)		9,034			1,724			(3,694	)		846			(17,458	)		(3,899	)		12,312					(9,045	)
Inventories		(1,635	)		1,664			6,082			(18,761	)		722			840			(13,821	)		(6,716	)		(18,975	)		8,950			(307	)		(10,911	)				(2,268	)
Prepaid Expenses		2,099			(5,744	)		(1,680	)		63			953			1,412			1,545			(2,518	)		1,392			1,735			185			286					2,206
Accounts Payable and Accrued Liabilities		3,889			(3,011	)		17,017			(12,155	)		(2,782	)		16,338			(15,088	)		33,073			31,541			(5,319	)		7,639			(18,287	)				(15,967	)
Other Credits		2,819			7,375			3,838			2,527			-			-			-			-			-			-											-
Cash Provided (Used) by Continuing Operations		53,915			(995	)		144,420			97,369			36,063			74,555			15,133			60,207			185,958			14,052			46,424			15,841			-		76,317
Investing Activities
Capital Expenditures		(32,327	)		(15,887	)		(46,178	)		(110,245	)		(64,118	)		(83,338	)		(88,983	)		(81,219	)		(317,658	)		(103,592	)		(71,496	)		(66,592	)				(241,680	)
Proceeds from Asset Disposals		11,258			47,243			7,136			23,107			987			(212	)		186			4,591			5,552			1,288			1,078			1,562					3,928
Purchases of Short-term Investments - net											(50,500	)		11,500			29,000			10,000			-			50,500			-						-					-
Investments in Insurance Contracts		(713	)		(1,162	)		(58,798	)		(4,366	)		(2,402	)		(1,872	)		(1,014	)		(773	)		(6,061	)		(415	)		65,944			22,611					88,140
Other - Net		2,961			(2,875	)		(677	)		612			297			(402	)		(20	)		(211	)		(336	)		(24	)		79			163					218
Cash Provided (Used) by Investing Activities		(18,821	)		27,319			(98,517	)		(141,392	)		(53,736	)		(56,824	)		(79,831	)		(77,612	)		(268,003	)		(102,743	)		(4,395	)		(42,256	)		-		(149,394	)
Financing Activities
Long Term Borrowings		366,640			718,097			-			250,000			-			-			-			38,000			38,000			124,000			65,000			24,000					213,000
Debt Retirements		(371,344	)		(592,398	)		(699	)		(600,700	)		(1	)		(354	)		(930	)		(24,236	)		(25,521	)		(46,173	)		(84,064	)		(14,076	)				(144,313	)
Debt Issuance Costs		(1,458	)		(16,378	)		(39	)		(7,363	)		-			-			-			-			-			(944	)		(89	)		(119	)				(1,152	)
Debt Retirement Costs					(8,605	)		-			(96,029	)		-			-			(4	)		(2	)		(6	)		-											-
Interest Rate Swap Terminations					8,358			(6,315	)		-			-			-			-			-			-			-											-
Stock Option Exercises		512			2,541			41,399			7,510			752			1,091			4,133			418			6,394			599			131			1,948					2,678
Common Dividends Paid		(6,315	)		(6,336	)		(6,643	)		(6,908	)		(1,798	)		(1,802	)		(1,868	)		(2,049	)		(7,517	)		(2,051	)		(2,052	)		(2,058	)				(6,161	)
Other - Net		(1,961	)		(26	)		-			-			881			682			84			47			1,694			3,287			96			136					3,519
Cash Provided (Used) by Financing Activities		(13,926	)		105,253			27,703			(453,490	)		(166	)		(383	)		1,415			12,178			13,044			78,718			(20,978	)		9,831			-		67,571
Net Cash Provided (Used) by Continuing Operations		21,168			131,577			73,606			(497,513	)		(17,839	)		17,348			(63,283	)		(5,227	)		(69,001	)		(9,973	)		21,051			(16,584	)		-		(5,506	)
DISCONTINUED OPERATIONS
Cash Provided (Used) by Discontinued Operating Activities		(5,797	)		12,668			73,104			(7,778	)														-														-
Cash Used by Discontinued Investing Activities		(23,265	)		(14,068	)		(28,163	)		(2,757	)														-														-
Cash Used by Discontinued Financing Activities		(2,117	)		-			-			340,587															-														-
Net Cash Provided (Used) by Discontinued Operations		(31,179	)		(1,400	)		44,941			330,052			-			-			-			-			-			-			-			-			-		-
Increase (Decrease) in Cash and Cash Equivalents		(10,011	)		130,177			118,547			(167,461	)		(17,839	)		17,348			(63,283	)		(5,227	)		(69,001	)		(9,973	)		21,051			(16,584	)		-		(5,506	)
Beginning Cash and Cash Equivalents		12,887			2,876			133,053			251,600			84,139			66,300			83,648			20,365			84,139			15,138			5,165			26,216			9,632		15,138
Ending Cash and Cash Equivalents		2,876			133,053			251,600			84,139			66,300			83,648			20,365			15,138			15,138			5,165			26,216			9,632			9,632		9,632

8

Texas Industries, Inc.
Reconciliation of EBITDA to Net Income and Cash Provided (Used) by Continuing Operations
In $ Thousands

	FY2003		FY2004		FY2005		FY2006			FY2007										FY2008
							Total			Q1		Q2		Q3		Q4		Total		Q1		Q2		Q3		Q4		Total
EBITDA Defined
Net Income (Loss) from Continuing Operations		27,165		42,277		45,444		(589	)		29,431		28,652		12,713		30,111		100,907		17,914		29,315		14,624		-		61,853
Plus (minus):
Interest		14,827		24,102		23,533		31,155			5,542		4,643		3,289		600		14,074		-		-		-		-		-
Income Taxes (Benefit)		13,485		16,819		16,811		(8,225	)		13,834		13,133		6,838		15,779		49,584		8,173		13,265		6,300		-		27,738
Depreciation, Depletion & Amortization		49,196		47,409		46,474		44,955			11,172		11,112		11,572		12,500		46,356		13,318		13,846		13,816		-		40,980
Loss on Early Retirement of Debt and Spin-off Charges		-		12,302		894		113,247			-		-		26		22		48		-		-		-		-		-
EBITDA		104,673		142,909		133,156		180,543			59,979		57,540		34,438		59,012		210,969		39,405		56,426		34,740		-		130,571

EBITDA represents income from continuing operations before interest, income taxes, depreciation and amortization, and loss on early retirement of debt.

EBITDA is presented because we believe it is a useful indicator of our performance and our ability to meet debt service and capital expenditure requirements.

It is not, however, intended as an alternative measure of operating results or cash flow from operations as determined in accordance with generally accepted accounting principles.

EBITDA is not necessarily comparable to similarly titled measures used by other companies.

EBITDA Reconciliation
Cash from Continuing Operating Activities	53,915		(995	)	144,420		97,369		36,063		74,555		15,133		60,207		185,958		14,052		46,424		15,841		-	76,317
Plus (minus):
Changes in Operating Assets and Liabilities	1,407		70,696		(16,384	)	33,386		7,325		(27,624	)	25,640		(20,145	)	(14,804	)	12,092		(3,618	)	16,600		-	25,074
Deferred Taxes (Benefit)	27,726		(319	)	(33,811	)	(6,581	)	(3,777	)	(4,734	)	(8,319	)	5,476		(11,354	)	(513	)	(614	)	(3,527	)	-	(4,654	)
Income Taxes (Benefit)	13,485		16,819		16,811		(8,225	)	13,834		13,133		6,838		15,779		49,584		8,173		13,265		6,300		-	27,738
Loss (Gain) on Disposal of Assets	(687	)	37,997		6,582		34,768		490		49		31		2,347		2,917		455		462		279		-	1,196
Interest	14,827		24,102		23,533		31,155		5,542		4,643		3,289		600		14,074		-		-		-		-	-
Spin-off Charges	-		-		894		6,241		-		-		-		-		-		-		-		-		-	-
Other - net	(6,000	)	(5,391	)	(8,889	)	(7,570	)	502		(2,482	)	(8,174	)	(5,252	)	(15,406	)	5,146		507		(753	)	-	4,900
EBITDA	104,673		142,909		133,156		180,543		59,979		57,540		34,438		59,012		210,969		39,405		56,426		34,740		-	130,571

9

Texas Industries, Inc.
Business Segment Summary
$ Thousands

	FY2004			FY2005			FY2006			FY2007															FY2008
				Total			Total			Q1			Q2			Q3			Q4			Total			Q1			Q2			Q3			Q4		Total
Segment Net Sales (Including Delivery Fees)
Cement		383,623			431,895			471,482			137,690			122,770			111,885			132,578			504,923			129,497			129,234			110,797					369,528
Aggregates		206,970			225,972			256,109			75,895			65,879			60,573			71,611			273,958			71,863			75,958			68,166					215,987
Consumer Products		274,939			282,512			337,458			89,545			87,229			68,203			90,798			335,775			94,526			98,031			82,060					274,617
Eliminations		(98,353	)		(105,576	)		(121,127	)		(31,478	)		(30,046	)		(23,890	)		(32,992	)		(118,406	)		(32,432	)		(34,750	)		(30,488	)				(97,670	)
Total Net Sales		767,179			834,803			943,922			271,652			245,832			216,771			261,995			996,250			263,454			268,473			230,535			-		762,462
Operating Profit
Cement		66,069			82,719			110,953			40,134			50,346			36,470			45,381			172,331			17,218			33,950			24,299					75,467
Aggregtates		19,047			29,902			48,339			12,582			6,832			1,320			10,517			31,251			11,660			11,085			5,304					28,049
Consumer Products		11,013			5,259			10,349			3,641			2,623			(1,742	)		5,324			9,846			4,077			4,607			(481	)				8,203
Unallocated Overhead and Other Income		26,680			(4,307	)		(10,181	)		(1,911	)		(2,877	)		(3,257	)		(3,683	)		(11,728	)		(1,734	)		(1,746	)		(2,624	)				(6,104	)
Total Operating Profit		122,809			113,573			159,460			54,446			56,924			32,791			57,539			201,700			31,221			47,896			26,498			-		105,615
Corporate
Selling, General and Administrative		(28,658	)		(33,272	)		(39,110	)		(7,747	)		(14,522	)		(11,359	)		(11,566	)		(45,194	)		(5,809	)		(7,379	)		(6,119	)				(19,307	)
Interest		(24,102	)		(23,533	)		(31,155	)		(5,542	)		(4,643	)		(3,289	)		(600	)		(14,074	)		-											-
Loss on Debt Retirements and Spin-off Charges		(12,302	)		(894	)		(113,247	)		-			-			(26	)		(22	)		(48	)		-											-
Other Income		1,349			6,381			15,238			2,108			4,026			1,434			539			8,107			675			2,063			545					3,283
Income (loss) from Continuing Operations before Income Taxes		59,096			62,255			(8,814	)		43,265			41,785			19,551			45,890			150,491			26,087			42,580			20,924			-		89,591
Major Gains (Losses) in Other Income
Unallocated Overhead - Sale of Brick Assets		34,710			-			-			-			-			-			-			-			-			-			-			-		-
Aggregates - Sale of Emissions Credits		-			6,225			-			-			-			-			-			-			-			-			-			-		-
Aggregates - Sale of Real Estate		-			-			23,987			-			-			-			-			-			-			-			-			-		-
Cement - Cement Antidumping Settlement		-			-			-			-			19,803			-			-			19,803			-			-			-			-		-

The following lines are not included in the materials we provide to investors:

Adjusted EBIT Margins
Cement	17.2	%	19.2	%	23.5	%	29.1	%	24.9	%	32.6	%	34.2	%	30.2	%	13.3	%	26.3	%	21.9	%	20.4	%
Aggregates	9.2	%	10.5	%	9.5	%	16.6	%	10.4	%	2.2	%	14.7	%	11.4	%	16.2	%	14.6	%	7.8	%	13.0	%
Consumer Products	4.0	%	1.9	%	3.1	%	4.1	%	3.0	%	-2.6	%	5.9	%	2.9	%	4.3	%	4.7	%	-0.6	%	3.0	%
Total TXI	7.9	%	9.6	%	11.8	%	18.0	%	10.8	%	10.5	%	17.8	%	14.5	%	9.9	%	15.9	%	9.1	%	11.8	%

10