Eagle Materials supplies business update amid COVID-19 uncertainty

Eagle Materials supplies business update amid COVID-19 uncertainty
15 April 2020


US-based Eagle Materials has announced that it intends to continue operations as an essential business and deliver products to its customers, since its primary manufacturing facilities span across the country’s heartland in areas where construction has generally been deemed essential by government authorities.

Although market conditions for the company’s construction materials have reportedly remained robust, there is uncertainty about the level of mid-term demand sustainability. Therefore, Eagle Materials has reduced spending and maximised free cash flow, including limiting capital spending to critical maintenance, safety and regulatory projects, and managing the timing and duration of its maintenance programmes, according to a press release.

"We are also well-positioned to manage expenses in the face of potential demand impacts from COVID-19 given that a majority of our cost of goods sold is variable in nature," stated the company.

With regards to the company’s upcoming separation of its Heavy and Light Materials businesses, the move is still going ahead, but the timeline for completion has now become uncertain.

Published under Cement News