Q3 profits jump at Eagle Materials

Cement revenue increases 12% for the period as wallboard and paperboard revenue jumps 21%.

HBSDealer Staff

1/28/2022

photo,building,table,room,bed,area,sitting,living,bedroom,made,computer,different,large,furniture,bench,snow,standing,track,riding,man,parked,kitchen,fire,train,horse

Eagle Materials reported third quarter 2021 revenue increased 14% to $463 million.

Revenue in the Dallas, Texas-based company’s heavy materials sector, which includes cement, concrete and aggregates, as well as a joint venture and intersegment Cement revenue, was up 9% to $303.5 million.

Cement revenue for the quarter, including the joint venture and intersegment revenue, was up 12% to $261.2 million, These increases reflect improved cement sales volume and net sales prices, Eagle said.

The average net cement sales price for the quarter increased 6% to $118.44 per ton. Cement sales volume for the quarter was 2 million tons, up 7% versus the prior-year period.

Concrete and Aggregates revenue decreased 3% to $42.4 million. The declines primarily reflect lower concrete and aggregates sales volume and higher fuel costs, partially offset by improved pricing.

Revenue in the light materials sector, which includes gypsum wallboard and paperboard, increased 21% to $192.1 million, reflecting higher wallboard and paperboard sales prices.

Gypsum wallboard sales volume was 695 million square feet, down 4%, while the average gypsum wallboard net sales price increased 29% to $191.41 per MSF. The decline in wallboard sales volume was due to ongoing homebuilder supply chain difficulties, Eagle reported. But the company’s order pace improved during the quarter.

Eagle Materials also reported net earnings of $102.5 million for the third quarter, rising more than 26% from net earnings of $81.2 million in the prior third quarter.

###

The Bottom Line: Profits at Eagle Materials jump 26% to $102.5 million as cement revenue rises grows 12% for the period.

What the CEO said: “Our record results this quarter reflect both continued strength in U.S. construction activity and excellent execution by our team as supply chain challenges continued to dominate the broader industrial marketplace,” said Michael Haack, president and CEO of Eagle Materials.

Company Info: Click here to read the full third quarter 2021 financial report from Eagle Materials.

Related Topics