Aggregate production down, pricing up at Eagle Materials

Eagle Materials reported first-quarter fiscal 2019 revenues of $393.8 million, an increase of 8 percent from the same period last year.

Quarterly revenue improved from $366.1 million in first-quarter fiscal 2018.

Eagle Materials’ first-quarter fiscal 2019, which encompasses the months of April, May and June 2018, ended June 30.

Revenue in the company’s heavy materials sector, which includes cement, concrete and aggregate, totaled $227.3 million, marking a slight improvement from first-quarter fiscal 2018. Heavy materials operating earnings decreased 13 percent to $42.8 million, primarily due to increased maintenance costs resulting from the annual maintenance outage at the company’s Fairborn Cement plant.

While the company’s revenue was up 8 percent overall and the heavy materials sector improved slightly, too, Eagle Materials’ concrete and aggregate revenue for the first quarter decreased 7 percent to $40.5 million, from $43.5 million in first-quarter fiscal 2018. First-quarter operating earnings were $5.5 million, a decline of 9 percent due to lower sales volumes partially offset by improved pricing, according to the company.

In terms of production, Eagle Materials produced 856 M tons, a 4 percent decrease from 895 M tons during the same period last year. Price per ton increased by 6 percent to $9.75 per ton, compared to $9.22 per ton in fiscal 2018. 

“We are pleased to report another quarter of record revenue and net earnings,” says Dave Powers, president and CEO of Eagle Materials. “Looking ahead, we anticipate another strong year, as the backlog of work in our markets continues to drive demand for our products.”