Revenue in the heavy materials sector, which includes cement, concrete and aggregates, joint venture and intersegment cement revenue, was $341.1m, a 5% improvement. Heavy materials operating earnings increased 13% to $96.3m primarily because of improved cement sales prices.
Cement revenue for the quarter, including joint venture and intersegment revenue, was up 4% to $288.3m, and operating earnings were a record $88.8m, up 11%.
Eagle says these increases reflect improved cement net sales prices and sales volume.
The average net sales price for the quarter was up 6% to $117.78 per tonne. Cement sales volume for the quarter was a record 2.2 million tonnes, up 1%.
Concrete and aggregates revenue increased 14% to $52.8m, and operating earnings increased 43% to $7.5m.
The improvements reflect higher sales prices and sales volume, the company adds.
Eagle CEO Michael Haack says: “Eagle achieved new quarterly records for revenue and earnings per share during the quarter. Despite price inflation in energy and recycled paper, our gross profit margins improved 310 basis points from the prior year to 30.5%. These results reflect continued strength in underlying market conditions and strong execution by our team. Our recent pricing actions across much of our footprint will continue to help offset increases in certain input costs, as will our consistent focus on driving operational efficiencies.
“During the quarter, we completed the refinancing of Eagle’s capital structure by issuing $750 million of 10-year senior notes with an interest rate of 2.50% and redeeming previously issued debt with a higher interest rate. We also returned nearly $200 million to shareholders through our quarterly cash dividend and the repurchase of 1.3 million shares of our common stock. We are well-positioned for a strong second half of fiscal 2022 and remain committed to delivering sustainable growth and superior shareholder value.”