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Granite offers window into 2021 material business

By |  February 25, 2022

Logo: Granite Construction

Material segment revenues decreased in the fourth quarter last year at Granite Construction, but the company says revenues tied to materials were up for the full year.

Fourth-quarter revenues in Granite’s material segment dipped 4.9 percent, and gross profit from continuing operations dropped 26.5 percent in the quarter. Material segment revenues were up 11.8 percent across 2021, the company adds, while gross profit from continuing operations was down 9.5 percent for the same period.

According to Granite, fourth-quarter material revenues decreased because of lower aggregate and asphalt volumes in its California group due to wet weather. Granite’s material gross profit in the fourth quarter decreased due to lower volumes in California, as well as higher fuel and liquid asphalt costs compared to the fourth quarter of 2020.

In terms of the full year, Granite says material revenue increased from higher sales volumes that were driven by mostly dry weather in the first three quarters of the year. The company says its 2021 gross profit in the segment decreased because of higher fuel and liquid asphalt costs compared to 2020.

“We begin 2022 as a changed company from a year ago, but we still have work to do,” says Kyle Larkin, president and CEO of Granite. “While we expect to grow revenue in the California and Mountain groups, that growth will be offset by lower revenue in the Central group as we transform that business and work through the ORP (Old Risk Portfolio).”

Kevin Yanik

About the Author:

Kevin Yanik is editor-in-chief of Pit & Quarry. He can be reached at 216-706-3724 or kyanik@northcoastmedia.net.

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