U.S. Lime & Minerals releases first-quarter 2018 report

United States Lime & Minerals released its first quarter 2018 results.

Revenues in the first quarter were $35.3 million, compared to $36.2 million in the first quarter of the prior year, a decrease of 2.4 percent. Revenues from the company’s lime and limestone operations in the first quarter decreased 2.3 percent to $34.7 million, from $35.5 million in the prior year period.

The decrease in lime and limestone revenues in the first quarter 2018, as compared to first quarter 2017, resulted primarily from decreased demand from construction customers due in part to inclement weather conditions, the company reports. 

Those revenue decreases, however, were partially offset by increased demand from the company’s steel customers, the company adds. The decline in volume from reduced demand was partially offset by 1.7 percent higher average prices in the first quarter 2018, compared to the 2017 first quarter.

The company’s gross profit was $7 million in the first quarter 2018, compared to $8.2 million in the prior year period. Included in gross profit in the first quarter were $6.8 million from the company’s lime and limestone operations, as opposed to $8 million in first quarter 2017. 

The decrease in gross profit resulted primarily from the aforementioned decreased revenues, increased stripping costs, fuel prices and transportation costs.

“This was a challenging start to 2018, including the weather related delays in orders from our construction customers and the impact we are seeing from increased transportation and fuel costs,” says Timothy Byrne, president and CEO of U.S. Lime and Minerals. “Looking ahead, we believe continued competitive pressures, new trucking regulations and the competition for trucks and drivers will be a headwind for the remainder of 2018.

“However, we are encouraged by the increased demand from our steel customers this quarter and, with improved weather conditions, we expect the demand from our construction customers will improve, compared to the first quarter 2018,” Byrne adds.