Eagle Materials president and CEO Michael Haack reflected on the recent performance of the company’s heavy materials business, noting that demand remained strong in the company’s fiscal second quarter that ended Sept. 30.
Revenue in Eagle’s heavy materials business, which includes aggregates, cement, ready-mixed concrete and joint-venture intersegment cement revenue, was up 10 percent in the quarter to $426.9 million. Operating earnings in the heavy materials business were up 19 percent to $126.1 million.
Both the increase in revenue and operating earnings were primarily attributable to higher cement sales prices, Eagle says.
“In our heavy materials business, as demand remained strong and our operations remained nearly sold out, we implemented a second round of cement price increases in early July across half our markets and announced the next round of price increases for early January 2024,” Haack says.
Revenue related to aggregates and concrete, however, dropped 5 percent in the quarter to $66.1 million. Eagle says the decline was the result of lower concrete sales that were partially offset by higher concrete pricing.
Eagle’s revenue tied to aggregates and concrete is up on the year, though. Through nine months of 2023, Eagle’s aggregate and concrete revenue is up 1.7 percent.
