Lime and limestone revenues and gross profit were up in the fourth quarter at United States Lime & Minerals (USLM).
Those marks were also up at USLM for the entirety of 2023, the company says.
“While we are pleased with our financial performance in the fourth quarter and full-year 2023, reduced demand in the fourth quarter from our industrial and construction customers continued to generate headwinds for us,” says Timothy Byrne, president and CEO of USLM. “Increased demand from our roofing and oil and gas customers was an encouraging offset to overall decreases in volume.”
Fourth-quarter and full-year details
USLM’s lime and limestone revenues were up 13.1 percent in the fourth quarter of 2023 to $65.4 million. For the year, USLM’s lime and limestone revenues were $280.2 million versus $233.4 million for the entirety of 2022. That mark is up 20 percent.
As USLM describes, the increases in revenues in the fourth quarter and across 2023 resulted from increases in average selling prices for its lime and limestone products that were partially offset by decreased sales volumes.
A decrease in sales volumes in the fourth quarter was principally due to decreased demand from industrial and construction customers, the company adds. Decreased sales volumes were partially offset by increased demand from USLM’s roofing and oil and gas services customers.
A decrease in sales volumes for the entirety of 2023 was principally due to decreased demand from USLM’s industrial, steel and construction customers that was partially offset by increased demand from roofing, environmental, and oil and gas services customers.
USLM’s lime and limestone gross profit in the fourth quarter, meanwhile, was $23.6 million – an increase of 41.9 percent. The company’s lime and limestone gross profit for the entirety of 2023 was $102.9 million, a mark that is 49.2 percent higher than the previous year.
According to USLM, the increases in gross profit resulted primarily from increased revenues that were partially offset by increased production costs – largely from higher energy, labor, and parts and supplies costs.
“Looking ahead, we anticipate that soft construction demand, particularly from commercial building, will continue through at least the first half 2024,” Byrne says.
