United States Lime & Minerals Inc. announced second quarter 2023 results, reporting revenues of $74.0 million, compared to $60.5 million in the second quarter 2022, an increase of $13.5 million, or 22.3%.
For the first six months 2023, the company’s revenues were $140.8 million, compared to $111.4 million in the first six months 2022, an increase of $29.4 million, or 26.4%.
Lime and limestone revenues were $73.7 million in the second quarter 2023, compared to $59.6 million in the second quarter 2022, an increase of $14.1 million, or 23.6%. For the first six months 2023, lime and limestone revenues were $140.2 million, compared to $109.9 million in the first six months 2022, an increase of $30.3 million, or 27.6%.
The increase in revenues in the second quarter 2023, compared to the second quarter 2022, resulted from increases in average selling prices for the company’s lime and limestone products and increased sales volumes, principally due to increased demand from the company’s environmental and oil and gas services customers, partially offset by decreased demand from the company’s steel customers.
The increase in revenues for the first six months 2023, compared to the first six months 2022, resulted from increases in average selling prices for the company’s lime and limestone products and increased sales volumes, principally due to increased demand from the company’s environmental customers, partially offset by decreased demand from the company’s steel and industrial customers.
The company’s gross profit was $27.1 million in the second quarter 2023, compared to $16.5 million in the second quarter 2022, an increase of $10.7 million, or 64.6%. The company’s gross profit was $51.1 million in the first six months 2023, compared to $30.9 million in the first six months 2022, an increase of $20.2 million, or 65.2%.
The company’s lime and limestone gross profit was $27.1 million in the second quarter 2023, compared to $16.0 million in the second quarter 2022, an increase of $11.1 million, or 69.8%. The company’s lime and limestone gross profit in the first six months 2023 was $51.2 million, compared to $30.2 million in the first six months 2022, an increase of $21.0 million, or 69.6%.
The increases in gross profit in the second quarter and first six months 2023, compared to the comparable 2022 periods, resulted primarily from the increased revenues discussed above, partially offset by increased production costs, principally from higher energy, parts and supplies, and labor costs.
“We are pleased with our strong performance in the second quarter 2023. We continue to see pressure on our lime and limestone production costs, particularly for energy, parts and supplies, and labor. Softening demand from our steel customers is potentially an indicator of some hesitancy from that sector as the U.S. economy faces uncertainty for the remainder of 2023 and higher interest rates adversely impact the construction markets. This could impact future demand and prices for our products,” said Timothy W. Byrne, president and chief executive officer.