Lime and limestone revenues were up in the second quarter at United States Lime & Minerals (USLM), which experienced gains in both volumes and pricing.
According to USLM, lime and limestone revenues were up 23.6 percent in the second quarter to $73.7 million. For the first six months of the year, lime and limestone revenues jumped 27.5 percent to $140.2 million.
USLM says demand from environmental and oil and gas services customers were key contributors to volume increases.
The company’s gross profit tied to lime and limestone in the second quarter was also up to $27.1 million. That’s a 69.3 percent increase over the second quarter of 2022. The company’s lime and limestone gross profit for the first six months of 2023, meanwhile, was $51.2 million – an increase of 69.5 percent.
“We are pleased with our strong performance in the second quarter [of] 2023,” says Timothy Byrne, president and CEO of USLM. “We continue to see pressure on our lime and limestone production costs, particularly for energy, parts and supplies, and labor. Softening demand from our steel customers is potentially an indicator of some hesitancy from that sector, as the U.S. economy faces uncertainty for the remainder of 2023, and higher interest rates adversely impact the construction markets. This could impact future demand and prices for our products.”
Byrne offered a similar assessment earlier this year as USLM emerged from the first quarter.
“We are pleased with our performance in the first quarter,” Byrne says. “Looking ahead for the remainder of 2023, we anticipate continuing pressure on our lime and limestone production costs and believe general recessionary concerns could potentially impact future demand for our products.”
