Eagle Materials is among the first public construction materials companies to report its quarterly results for the period ending Dec. 31, detailing its fiscal-year third-quarter performance.
Revenue in Eagle’s heavy materials sector, which includes aggregates, cement and ready-mixed concrete, as well as joint-venture and intersegment cement revenue, was up 11 percent to $390.2 million. Eagle’s heavy materials operating earnings, meanwhile, increased 9 percent to $92.7 million.
Eagle says both increases resulted from higher aggregate and cement sales volumes, as well as the contribution from a recently acquired aggregate business in western Pennsylvania.
Aggregate and concrete revenue was up 22 percent in the quarter to $69 million, with operating earnings increasing to $1.4 million. Eagle says the gain reflects higher aggregate sales volumes, elevated aggregate and concrete pricing, and a $7.6 million revenue contribution from the recently acquired aggregate business.
Excluding the recently acquired business, Eagle says aggregate revenue increased 9 percent with sales volumes up 34 percent.
“Despite a mixed construction environment, Eagle’s portfolio of businesses continued to perform well during the quarter, generating revenue of $556 million, EPS (earnings per share) of $3.22 and gross margins of 28.9 percent,” says Michael Haack, president and CEO of Eagle. “While the residential construction market was challenged, federal, state and local spending on public infrastructure projects and private nonresidential construction remained elevated, supporting strong demand for our heavy construction products.”
