Cherry acquisition boosts Arcosa’s first-quarter 2020 performance

Construction aggregate revenues were up in the first quarter of the year at Arcosa, which completed its acquisition of Houston-area Cherry Companies early this year.

Arcosa reported a first-quarter construction aggregate revenue of $132.1 million, up from $88.4 million in the first quarter of 2019.

“Our first-quarter results demonstrate Arcosa’s outstanding earnings power when infrastructure markets are strong,” says Antonio Carrillo, president and CEO at Arcosa. “Our construction products businesses had an excellent quarter, with the Cherry acquisition exceeding our expectations.”

Carrillo, however, recognizes that the construction materials industry is entering a period of economic uncertainty due to the coronavirus pandemic.

“Above all else, we are committed to the health and safety of our employees and the communities in which we operate,” Carrillo says. “Our facilities are following the highest standards of health and safety, as we continue to produce products that are critical for North American infrastructure.”

According to Arcosa, the company’s outlook for the rest of 2020 will depend on the duration and magnitude of the economic slowdown and its impact on public and private construction activity in the company’s key markets.

“We have entered this period of economic uncertainty in a strong financial position,” Carrillo says. “We have low leverage, ample liquidity and a lean operating model to respond quickly to changes in demand. Our strong balance sheet will help us manage through this crisis and seek disciplined acquisition opportunities, where appropriate. I am extremely proud of our team’s dedication and resilience during this challenging period.”

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