Eagle Materials hits record revenue in Q1
Eagle Materials reported company record first quarter 2021 revenue of $428 million, rising 15% from total revenue of $370.6 million for the first quarter 2020.
Net earnings for the first quarter more than doubled to $91.2 million from net earnings fo $41.3 million for the same period last year.
Revenue in Eagle’s heavy materials sector, which includes cement, concrete, and aggregates was $305.5 million for the quarter marking a 30% improvement. Cement revenue for the quarter, including joint venture and intersegment revenue, was up 34% to $261.4 million while concrete and aggregates revenue increased 12% to $44.1 million.
Revenue in the light materials sector, which includes gypsum wallboard and paperboard, improved slightly to $152.8 million, as favorable overall results in gypsum wallboard were partially offset by declines in paperboard, Eagle Materials said.
The Dallas, Texas-based company said it still plans to separate its heavy materials and light materials businesses into two independent, publicly traded corporations through a tax-free spin-off to Eagle shareholders.
“We remain committed to the separation, although the timing is uncertain,” Eagle Materials said in a press release issued today. “We continue preparations to ensure that the two businesses are well-positioned for the separation when the markets recover from the effects of the COVID-19 pandemic.”
The Bottom Line: Sales jump 15% to $428 million in the first quarter 2021 as profits more than double to $91.2 million.
What the CEO said: “Against the backdrop of a global health crisis and unprecedented business disruption, our company continued to perform well during the quarter, and our markets have proven to be resilient in the current environment,” said Michael Haack, president and CEO of Eagle Materials.
“While we are very pleased with our first-quarter performance, we recognize a high level of uncertainty persists in our markets and the overall economy: despite the decline in jobless claims from the March peak, total unemployment remains historically high; state and local governments face ongoing revenue pressure, which could have the potential to constrain infrastructure budgets; and, in some geographic areas important to our business, COVID-19 case numbers continue to escalate.”
Company info: Read the full first quarter 2020 financial report from Eagle Materials here.