Cement sales bolster Eagle Materials’ quarterly growth

By |  October 27, 2022

Logo: Eagle Materials Inc

Revenue in Eagle Materials’ heavy materials sector, which includes aggregates, ready-mixed concrete and cement, increased 14 percent in the company’s fiscal second quarter – July through September – to $389.1 million.

Operating earnings in the sector totaled $106.1 million, up 10 percent compared to the same period last year, primarily due to higher cement sales prices, Eagle Materials says.

Cement revenue and operating earnings were each up 11 percent quarter over quarter, totaling $319.5 million and $98.8 million, respectively.

These increases reflect higher cement net sales prices, partially offset by lower sales volume, Eagle Materials says. The average net sales price for the quarter was up 12 percent to $132.50 per ton. Cement sales volume decreased 2 percent to 2.1 million tons.

“In our heavy materials business, as demand remained strong and our operations remained virtually sold out, we implemented a second round of cement price increases in early July and announced the next round of price increases for early January 2023,” says Michael Haack, president and CEO of Eagle Materials.

Aggregate and concrete revenue totaled $69.6 million in the quarter, a 32 percent increase. Eagle Materials says this reflects higher sales volume and concrete pricing, as well as the contribution of about $14 million from a recently acquired business in northern Colorado.

Aggregate and concrete operating earnings in the fiscal second quarter declined 3 percent to $7.3 million, primarily reflecting higher input costs, according to Eagle Materials.

“At this unique time in the U.S. markets, we are pleased to report second-quarter results that once again exceeded our expectations and set quarterly records, with price increases across each business line more than offsetting cost inflation pressures,” Haack says. “We generated record revenue of $605 million and record EPS (earnings per share) of $3.72, and we expanded gross margins by 160 bps (basis points) to 32.1 percent. Construction activity remained healthy across our markets, and utilization rates remained high across our network.”

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About the Author:

Jack Kopanski is the Managing Editor of Pit & Quarry and Editor-in-Chief of Portable Plants. Kopanski can be reached at 216-706-3756 or jkopanski@northcoastmedia.net.

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