Pricing gains propel public producers in third quarter
Holcim sales of cement (up 12 percent) and ready-mix (up 14 percent) made sizable volume gains in the third quarter in North America, as well.
Additionally, Holcim says it made 10 bolt-on acquisitions in the first nine months of 2022 across its aggregate and ready-mix businesses.
Granite Construction
Granite Construction reports that its materials revenue increased 17 percent in the third quarter, primarily due to higher sales volumes and pricing in aggregates.
The gains in aggregates more than offset lower asphalt sales volumes, Granite says.
Companywide, Granite’s third-quarter EBITDA totaled $97 million. The company’s EBITDA in the third quarter of 2021 was $81 million.
“During the third quarter, we continued to make progress towards achieving our 2024 strategic plan targets of 9 percent to 11 percent adjusted EBITDA margin,” says Kyle Larkin, president and CEO of Granite. “The overall market environment continues to be robust, and our teams are focused on driving improved profitability across our businesses.”
MDU Resources
The construction materials business at MDU Resources had a record quarterly revenue ($975 million) in the third quarter and earned $102.8 million.
That figure is up 17 percent from the prior year’s third quarter.
Inflationary impacts, particularly higher fuel, material and labor costs, were largely recovered in the quarter through price increases, MDU Resources says. Also, the company says its construction materials business performed a significant portion of work that was delayed by unfavorable weather earlier in the year.
Demand remains strong for construction materials and contracting work, MDU Resources adds, with a record third-quarter backlog of $895 million as of Sept. 30.
USLM
Lime and limestone revenues were up 27 percent in the third quarter at United States Lime & Minerals (USLM).
In dollar terms, USLM’s lime and limestone revenues jumped from $51.7 million in the third quarter of 2021 to $65.7 million in this year’s third quarter. According to USLM, the revenue increase was driven primarily from increased sales volumes in construction, agriculture, roofing, and oil and gas services. An increase in average selling prices also played a role.
“We are pleased with our performance in the third quarter, particularly considering the inflationary and supply chain challenges we are facing,” says Timothy Byrne, president and CEO of USLM. “We have made progress in passing along the cost increases that we have experienced this year. We continue to see strong demand from our construction customers and have benefited from long stretches of dry weather in our Texas markets.”
Featured image: P&Q Staff
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