Eagle Materials, which produces aggregate, concrete and other building materials, experienced positive growth in its heavy materials sector in its most recent quarter.
Fiscal second-quarter revenue within Eagle’s heavy materials sector, which includes aggregate, concrete and cement and joint-venture and intersegment cement revenue, totaled $282.6 million – a 22 percent increase from Eagle’s second quarter of fiscal 2019.
The sector’s operating earnings improved 20 percent to $73.8 million, primarily because of increased sales volume and net sales prices.
Aggregate and concrete revenue for the second quarter totaled $55.6 million, an increase of 42 percent. Second-quarter operating earnings were $7.3 million, a 77 percent increase, reflecting record concrete sales volume, improved concrete sales prices, and the financial results of a recently acquired small concrete and aggregate business.
Eagle Materials performed similarly across other sectors, setting a record fiscal second-quarter revenue of $414.5 million.
“We are proud to have achieved record revenue and net earnings per share for the second quarter of our fiscal year 2020,” says Michael Haack, president and CEO at Eagle Materials. “Our second-quarter performance was driven mostly by increased cement shipments, cost-control initiatives and strong operational execution, as we capitalized on the robust underlying demand across our geographic footprint.
Eagle Materials’ outlook for the remainder of the year remains positive.
“Demand for our building materials and construction products is supported by a number of favorable market dynamics, including ongoing growth in jobs, high consumer confidence and low interest rates,” Haack says.
