Revenue in Eagle Materials’ heavy materials sector, which includes aggregates, cement and ready-mixed concrete, was down in the company’s fiscal third quarter ending Dec. 31.
According to Eagle, quarterly revenue in the sector, combined with joint-venture and intersegment cement revenue, was down 4 percent to $351.8 million. Heavy materials operating earnings dropped 20 percent to $85.4 million, the company adds, with both declines resulting from lower sales volumes that higher sales prices partially offset.
Aggregate and concrete revenue decreased 2 percent in the quarter to $56.4 million, reflecting lower sales volumes in both that were partially offset by higher aggregate and concrete pricing, as well as $3.1 million of revenue contribution from an acquired aggregate business in Kentucky.
“Eagle’s portfolio of businesses continued to perform well despite ongoing adverse weather in our Midwest and Great Plains markets, where rainfall in November was 250 percent higher than normal,” says Michael Haack, president and CEO of Eagle Materials. “The excessive rainfall affected sales volume in our cement and concrete and aggregates businesses, although we achieved higher sales volume in gypsum wallboard and recycled paperboard.”
Haack maintains a relatively upbeat view as he looks to the months ahead.
“While the path to lower interest rates and improved homebuying affordability is less certain today, we remain optimistic about our businesses and our ability to execute on the opportunities in front of us,” he says. “Steady employment, housing supply that remains chronically short, and our cost-structure advantages continue to provide favorable conditions for our gypsum wallboard business in this dynamic environment. On the cement side, spending from the Infrastructure Investment & Jobs Act is still in the beginning phases, which should support multiple years of strong cement demand.”
Eagle’s quarterly cement revenue, which includes joint-venture and intersegment revenue, was down 4 percent.
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