New Enterprise Stone & Lime Co. Inc., a privately held, vertically integrated construction materials supplier and heavy/highway construction contractor in Pennsylvania and western New York – and a national traffic safety services and equipment provider – announced results for the fourth quarter and full year ended February 28, 2011.
Net sales were slightly softer for fiscal year 2011 as compared to the prior year. Segment sales in construction materials were up slightly for the 2011 fiscal year compared to the prior year due to an increase in sales of aggregates, ready mixed concrete and masonry products, and hot mix asphalt largely due to local market demands, as well as the timing of some work from fiscal 2010 into fiscal 2011.
Paul I. Detwiler, III, executive vice president of New Enterprise Stone & Lime Co. Inc., commented, "Our 2011 fiscal year performance reflected the impact from the continued challenging macroeconomic environment, as well as higher raw material costs. While we expect these conditions will persist throughout our 2012 fiscal year, we continue to take measures to manage our expenses in order to maintain an appropriate cost structure. We believe these actions better position our business for long-term growth.”
Segment sales in heavy/highway construction were slightly lower for the 2011 fiscal year compared to the prior year due to the overall decrease in highway and infrastructure spending at the federal, state and local level, and, to a lesser extent, the timing of the completion of various jobs and change orders. Segment sales in traffic safety services and equipment declined modestly for the 2011 fiscal year compared to the prior year as uncertainty surrounding the timing and amount of federal highway programs continued to impact public sector spending.