United States Lime & Minerals Inc. reported third quarter 2023 results. The company’s revenues in the third quarter 2023 were $74.9 million, compared to $66.5 million in the third quarter 2022, an increase of $8.4 million, or 12.7%.
For the first nine months 2023, the company’s revenues were $215.6 million, compared to $177.9 million in the first nine months 2022, an increase of $37.8 million, or 21.2%.
Lime and limestone revenues were $74.6 million in the third quarter 2023, compared to $65.7 million in the third quarter 2022, an increase of $8.9 million, or 13.5%. For the first nine months 2023, lime and limestone revenues were $214.8 million, compared to $175.6 million in the first nine months 2022, an increase of $39.2 million, or 22.3%.
The increase in revenues in the third quarter 2023, compared to the third quarter 2022, resulted from increases in average selling prices for the company’s lime and limestone products, partially offset by decreased sales volumes. The decrease in sales volumes was principally due to decreased demand from the company’s construction, steel and industrial customers, partially offset by increased demand from its environmental and roofing customers.
The increase in revenues for the first nine months 2023, compared to the first nine months 2022, resulted from increases in average selling prices for the company’s lime and limestone products on essentially flat sales volumes. Changes in sales volumes for the first nine months 2023, compared to the first nine months 2022, were principally due to increased demand from the company’s environmental and oil and gas services customers, offset by decreased demand from its steel, industrial, and construction customers.
The company’s gross profit was $28.2 million in the third quarter 2023, compared to $22.6 million in the third quarter 2022, an increase of $5.6 million, or 24.6%. The company’s gross profit was $79.3 million in the first nine months 2023, compared to $53.5 million in the first nine months 2022, an increase of $25.7 million, or 48.1%.
The company’s lime and limestone gross profit was $28.2 million in the third quarter 2023, compared to $22.2 million in the third quarter 2022, an increase of $6.0 million, or 27.0%. The company’s lime and limestone gross profit in the first nine months 2023 was $79.3 million, compared to $52.3 million in the first nine months 2022, an increase of $27.0 million, or 51.6%.
The increases in gross profit in the third quarter and first nine 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.
“In the third quarter 2023, we continued to see reduced demand from our steel and industrial customers, in addition to reduced demand from our construction customers. Fortunately, we were able to offset some of the reduced demand in those markets with increased demand from our environmental and roofing customers. Looking ahead, we anticipate continued weak demand in some of our key markets as everyone deals with the impact from continuing inflation, higher interest rates, and increasingly uncertain geo-political situations,” said Timothy W. Byrne, president and chief executive officer.