Revenue in Eagle Materials’ heavy materials sector, which includes aggregate, concrete and cement, as well as joint venture and intersegment cement revenue, declined 1 percent to $795.5 million in fiscal year 2019.
Heavy materials operating earnings for Eagle Materials’ fiscal year were $177.6 million, a decline of 10 percent.
Unusually wet weather throughout the fiscal year drove the decline in heavy materials revenue and operating earnings, the company says, hampering sales volume.
Additionally, fiscal-year 2019 revenue from aggregate and concrete declined 11 percent to $138.8 million. Aggregate and concrete reported fiscal 2019 operating earnings of $12.9 million, down 28 percent.
Persistently wet weather in the Austin, Texas, market was the primary driver of the revenue and earnings decline, Eagle Materials says.
“In fiscal 2019, our businesses continued to generate strong earnings and cashflow, despite challenging weather trends that depressed sales opportunities throughout much of our fiscal year,” says Dave Powers, CEO of Eagle Materials.
Also, aggregate and concrete revenue for the fourth quarter of 2019 was $28.5 million, a decrease of 7 percent.
Overall, Eagle Materials’ revenues were flat during the company’s last fiscal year, as well as its fiscal fourth quarter that ended March 31. According to Eagle Materials, it generated a full-year fiscal 2019 revenue of $1.4 billion. Fourth-quarter fiscal 2019 revenue finished at $284.7 million.
“Looking ahead, a strong jobs market, coupled with real wage growth and low interest rates, bodes well for our key construction markets in calendar 2019,” Powers says.
