USLM revenues dip in second quarter 2020

United States Lime & Minerals (USLM), a lime and limestone producer, reported that its revenues dropped 3.6 percent in the second quarter.

Revenues were $76 million for the first half of the year, down slightly compared to the first half of 2019 ($76.8 million).

According to USLM, the quarterly and first-half decreases can be attributed to reduced sales volumes of its lime and limestone products due to decreased demand – principally from the company’s oil and gas services, steel and environmental customers. Increased demand from the company’s construction customers partially offset declines in other markets, USLM says.

The company experienced increased rainfall in Texas in the second quarter, as well as an increase in the average selling prices of its lime and limestone products.

“We are pleased with our second-quarter 2020 results, especially in light of the challenges presented by the COVID-19 pandemic,” says Timothy Byrne, president and CEO at USLM. “We will continue to focus on cost-cutting initiatives and ways to further increase operating efficiencies to mitigate some of the decreases in demand resulting from the pandemic.”

USLM expects a continued slowdown in economic activity as pandemic restrictions continue, or even expand, which the company anticipates will have an adverse impact on the demand for its lime and limestone products.

In addition, USLM says a continued economic slowdown may put downward pressure on the prices the company is able to realize for its products.

Acquisition announced

Also upon releasing its second-quarter results, USLM shared that it acquired Carthage Crushed Limestone, a Missouri producer specializing in industrial and agricultural minerals. USLM made the purchase for $9 million.

USLM, which is headquartered in Dallas, supplies products to the construction, industrial, environmental, metals, oil and gas services, and agriculture industries, as well as roof shingle manufacturers.  The company operates lime and limestone plants and distribution facilities in Arkansas, Colorado, Louisiana, Missouri, Oklahoma and Texas through its wholly-owned subsidiaries.