United States Lime and Minerals, the Dallas based producer of lime and limestone products for steel, construction, environmental and industrial customers, grew sales and shrank profit in the third quarter. Revenue rose 4.1 percent to 106.2 million dollars from 102.0 million dollars a year earlier, on modest increases in both average selling prices and volumes, with steel demand a named driver. Revenue for the first nine months rose 2.9 percent to 293.1 million dollars.
Costs rose faster. Gross profit fell 2.7 percent to 50.8 million dollars from 52.2 million dollars, and net income fell 1.9 percent to 38.0 million dollars, or 1.32 dollars a diluted share, from 38.8 million dollars, or 1.35 dollars. The company attributed the squeeze to the sharp rise in diesel prices, higher transportation costs, and production inefficiencies while integrating a new kiln at its Texas facility, which began intermittently producing quicklime in the quarter and is expected to complete final commissioning in the fourth quarter. Earnings missed the 1.48 dollar consensus and the shares fell 4.7 percent after hours on Friday, the third consecutive quarterly miss this year on that measure.
The board declared the regular quarterly cash dividend of 0.06 dollars a share, payable December 11 to shareholders of record on November 20. The investment read is narrow but clean: pricing power covered volume and price, but not fuel. Whether the fourth quarter restores margin depends on diesel and on the Texas kiln reaching steady operation, both of which the company has now named explicitly.