Arcosa Inc. reported that revenues increased 19% to $488.2 million in the first quarter of 2020. In its report, the company noted its response to COVID-19:
- Our highest priority is the health and safety of our employees and communities; protocols are in place at plants and offices that meet or exceed Centers for Disease Control (CDC) and other guidelines.
- Our businesses support critical infrastructure sectors, as defined by the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency (CISA.gov).
- Plants have continued to operate throughout the crisis.
“Above all else, we are committed to the health and safety of our employees and the communities in which we operate,” noted Antonio Carrillo, president and chief executive officer. “Our facilities are following the highest standards of health and safety, as we continue to produce products that are critical for North American infrastructure.”
For its Construction Products division, the company reported that revenues increased 41% to $149.4 million in the first quarter, driven primarily by the acquisition of Cherry Companies. Volumes in the legacy businesses increased over the previous year’s quarter from strong construction market activity but were offset by lower volumes in aggregates plants serving oil and gas end markets.
The performance of the Cherry acquisition exceeded its expectations, reflecting strong Houston market fundamentals and outstanding execution during the integration, the company said.
Commenting on first quarter performance, Carrillo said, “Our first quarter results demonstrate Arcosa’s outstanding earnings power when infrastructure markets are strong. Our Construction Products businesses had an excellent quarter, with the Cherry acquisition exceeding our expectations. Energy Equipment executed very well, and our Barge business continued to ramp up to meet higher levels of demand.
“Our experienced management team has led our businesses through numerous cycles. As the macroeconomic outlook changed during the quarter, we responded quickly to conserve cash by minimizing non-essential capital expenditures, tightening our working capital management around receivables, payables, and inventory, and reducing our SG&A spending. We will continue to take appropriate actions on our cost structure.
“We have entered this period of economic uncertainty in a strong financial position. We have low leverage, ample liquidity, and a lean operating model to respond quickly to changes in demand. Our strong balance sheet will help us manage through this crisis and seek disciplined acquisition opportunities, where appropriate. I am extremely proud of our team’s dedication and resilience during this challenging period.”