Eagle Materials cements solid Q3 sales
Eagle Materials, the Dallas, Texas-based building materials producer, reported third quarter 2021 revenue jumped 18% to $404.7 million from third quarter 2020 revenue of $342.9 million.
Revenue in the company's heavy materials sector, which includes cement, concrete and aggregates, as well as joint venture and intersegment cement revenue, was $277.6 million, a 21% improvement.
Cement revenue for the quarter, including the joint vand intersegment revenue, was up 28% to $234.1 million.
Concrete and aggregates sales decreased 7% to $43.5 million in the quarter, however. The decline reflects the sale of our Northern California concrete and aggregates businesses during the first quarter of fiscal 2021, Eagle Materials said.
Revenue in the company’s light materials sector, which includes gypsum wallboard and paperboard, increased 8%, reflecting improved wallboard sales volume and pricing.
Eagle also posted net earnings of $81.2 million for the quarter compared to a net loss of $114.6 million in the third quarter 2020.
The company said that it still plans to separate its heavy materials and light materials businesses into two independent, publicly traded corporations by means of a tax-free spin-off to Eagle shareholders. Eagle noted that the timing of the separation remains uncertain given the effects of the COVID-19 pandemic.
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The Bottom Line: Eagle Materials swings to profits of $81.2 million in the third quarter 2021 following a loss of $114.6 million for the same period a year ago.
What the CEO said: “Our third quarter results demonstrate the overall resilience of our portfolio,” said Michael Haack, president and CEO of Eagle Materials. “Despite continued pandemic-related economic uncertainty, our wallboard shipments were up 9%, a third quarter record for American Gypsum, and our cement shipments were up 28%, reflecting the strong performance of the recently acquired Kosmos Cement Business and the strength of our core markets. We continued to generate strong operating cash flow, which significantly improved our balance sheet and liquidity position providing us with increased financial flexibility.”
Company info: The full third quarter 2020 financial report from Eagle Materials is available here.