Heidelberg Materials says sales volumes declined globally in all business units because of what it characterizes as a “global economic downturn.” According to the company, a demand decline in private residential construction – which was “massive” in some cases – was not offset by development in industrial commercial construction and infrastructure projects.
North America experienced slight declines in sales volumes, Heidelberg Materials adds. The company’s Western and Southern Europe Group recorded significant decreases in volumes as a result of declining construction activity.
Cemex
Net sales at Cemex operations in the U.S. rose 5 percent in the third quarter to $1.39 billion. Cemex’s EBITDA in the U.S., meanwhile, increased 36 percent to $268 million.
While the company’s U.S. EBITDA increase is ahead of Cemex’s global EBITDA increase (32 percent), Cemex’s net sales increase globally outpaced the company’s U.S. mark. Global net sales in the third quarter were up 9 percent at Cemex to $4.57 billion.
Eagle Materials
Eagle Materials reported that demand remained strong in its heavy materials business for the fiscal second quarter that ended Sept. 30.
Revenue in the 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.
Summit Materials
Summit Materials established companywide records for revenue and profitability in the third quarter, with its aggregate business contributing to the growth.
According to Summit, its net revenues in aggregates increased 9.9 percent in the third quarter to $179.8 million. The company’s adjusted cash gross profit margin in aggregates was 59 percent – up from 53.3 percent in the third quarter of 2022.
Additionally, Summit says its aggregate sales volumes decreased 3.8 percent in the third quarter despite a positive impact from acquisitions. Due primarily to reduced residential activity, Summit says organic aggregate sales volumes dropped 7.5 percent as lower volumes in Kansas, Missouri and British Columbia, Canada, more than offset organic aggregate volume growth in Virginia and north Texas.
The company’s average selling prices for aggregates, however, increased 14.4 percent.
Arcosa
Arcosa reported financial gains in its construction products business in the third quarter, detailing that revenues tied to aggregates and specialty materials were up 5 percent.
Combined with construction site support revenues, revenues in Arcosa’s construction products business were up 7 percent to $262.1 million. Elevated pricing of aggregates and specialty materials, plus volume growth in the natural aggregates business, drove the gains for Arcosa.
“In construction products, pricing remained strong across our portfolio,” says Antonio Carrillo, president and CEO of Arcosa. “Natural aggregates benefited from a recovery in overall volumes, particularly in our Texas and Gulf Coast regions. In specialty materials, margins increased significantly from the second quarter, reflecting solid execution on our operational improvement plan.”
Knife River
Knife River Corp. saw record results in the third quarter, with increases in revenue, gross profit and EBITDA.
According to Knife River, its net revenue in construction materials was up nearly 14.5 percent in the third quarter to $553.1 million. Company-wide revenue increased 12 percent to $1.09 billion.
Knife River’s gross profit reached $269.4 million – a 46 percent increase from the third quarter of 2022. The company’s EBITDA grew 40 percent in the quarter to $241.4 million.
Granite Construction
Elevated aggregate and asphalt pricing drove gains in Granite Construction’s materials business in the third quarter.
The materials segment’s revenue was up 5.9 percent in the third quarter to about $171 million. The materials segment’s gross profit was also up in the quarter – 33.8 percent higher, in fact – to about $29 million.
USLM
Revenues and gross profit tied to lime and limestone were up in the third quarter at United States Lime & Minerals (USLM).
According to USLM, its third-quarter lime and limestone revenues were up 13.5 percent to $74.6 million. USLM says the third-quarter jump in revenues derived from increases in average selling prices. Price increases helped to offset lower sales volumes, the company adds.
Related: CRH, Martin Marietta make a deal in Texas
Featured photo: P&Q Staff
