Quarterly concrete, agg revenue down at Eagle Materials

Eagle Materials reports that concrete and aggregate revenue decreased 7 percent to $43.5 million in the third quarter of its fiscal year, which ended Dec. 31.

The decline reflects the sale of Eagle Materials’ northern California concrete and aggregate businesses during the first quarter of fiscal 2021, the company says.

Excluding the results from the sold businesses, Eagle Materials says concrete and aggregate revenue was up 13 percent. Third-quarter operating earnings for concrete and aggregate increased 52 percent to $5.1 million, primarily reflecting improvements in organic concrete sales volume, concrete sales prices and operating efficiencies, as well as lower diesel fuel costs.

Quarterly rvenue in Eagle Materials’ heavy materials sector, which includes cement, concrete and aggregate, as well as joint-venture and intersegment cement revenue, was $277.6 million – a 21 percent improvement, according to Eagle Materials. Heavy materials operating earnings increased 31 percent to $75.5 million, the company adds, primarily because of improved cement net sales prices and earnings from the recently acquired Kosmos Cement business.

Eagle Materials, which manufactures and distributes portland cement, gypsum wallboard, recycled gypsum paperboard, and concrete and aggregate, reports that its overall third-quarter revenue was a record at $404.7 million – up 18 percent from the year prior.

“Our third-quarter results demonstrate the overall resilience of our portfolio,” says Michael Haack, president and CEO of Eagle Materials. “Despite continued pandemic-related economic uncertainty, our wallboard shipments were up 9 percent – a third-quarter record for American Gypsum, and our cement shipments were up 28 percent, reflecting the strong performance of the recently acquired Kosmos Cement business and the strength of our core markets.”