USLM reflects on the second quarter

United States Lime & Minerals (USLM) revenue jumped in the second quarter, although the company says the current inflationary environment is disproportionately impacting its lime and limestone production costs.

According to USLM, its second-quarter revenue was $60.5 million. That amount is up 23 percent, or $49.2 million, from the second quarter of 2021. Specifically, second-quarter lime and limestone revenue was $59.6 million – up 22.3 percent compared with the second quarter of 2021.

USLM says the increases primarily resulted from higher lime and limestone products sales volumes, as demand was up from its construction and industrial customers. Average selling price increases contributed, as well.

In terms of gross profit, USLM’s was $16.5 million in the second quarter. That amount is down 1.9 percent from the second quarter of 2021. The company’s lime and limestone gross profit in the quarter was $16 million, a 4.2 percent drop versus the second quarter of 2021.

According to USLM, it is adjusting and acclimating to longer lead times as supply chain delays have settled into a new normal. If increased production costs, particularly costs associated with energy and transportation, continue at their current rate, or accelerate, USLM expects its profitability could be adversely affected going forward.

“We are pleased with our increases in sales volumes and revenues,” says Timothy Byrne, president and CEO of USLM. “While we were able to increase our prices in the first half of the year, our price increases were not nearly enough to offset the increased cost pressures that we have been experiencing. To that end, we have been working with our valued customers to pass along additional price increases during the second half of the year.”