USLM Benefits from Higher Lime Prices

United States Lime & Minerals Inc (USLM) of Dallas, TX has reported a third quarter net income of US$9.3 million on revenues of US$43.7 million compared with US$9.9 million on revenues of US$43.6 million in the same period of 2019. The increase in revenues resulted primarily from increased sales volumes of the company’s lime and limestone products to agriculture and roofing customers, principally due to the addition of Carthage, partially offset by decreased demand from the company’s oil and gas services, environmental, and construction customers.

USLM’s gross profit in the third quarter of 2020 was US$14.2 million versus US$13.5 million in the same period of 2019. The increase in profitability was primarily the result of an increase in the average selling prices for lime and limestone products, lower fuel costs, and increased operating efficiencies associated with a new kiln at the company’s St Clair facility, partially offset by increased costs associated with its response to the COVID-19 pandemic.

Timothy W Byrne, USLM’s CEO, said, “During the third quarter 2020, we continued to see the negative impact on demand from some of our customers in industries more heavily impacted by the COVID-19 induced economic slowdown, especially oil and gas services and power generation. Our positive results from the third quarter 2020 are the result of the agility of our people as they face constantly evolving challenges presented by the fallout from the COVID-19 pandemic. We will continue to be diligent in controlling our costs and finding ways to further increase operating efficiencies to mitigate some of the adverse effects of the decreases in demand resulting from the pandemic.”

Volume 34, Issue 21

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