United States Lime & Minerals Q3 revenue rises on higher prices, volumes
USLM•Third-quarter revenue rose 4% year over year to $106.19 million, while gross profit and net income fell as costs increased and Texas kiln integration issues weighed on results. The company maintained its quarterly dividend at $0.06 per share.
1. Quarterly results
United States Lime & Minerals reported third-quarter revenue of $106.19 million, up 4% year over year, on higher prices and volumes. Net income was $38.04 million and gross profit was $50.77 million; the company attributed lower gross profit to higher transportation and fuel costs, including diesel, and production inefficiencies during Texas kiln integration.
2. Demand and outlook
Higher sales volumes were mainly driven by increased demand from steel customers, partly offset by lower construction demand. The company said it is monitoring signs of slowing residential construction demand in Texas and delays in large construction projects, and expects Texas kiln commissioning to be completed in the fourth quarter.
