Rock Products

AUG 2017

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MARKETPLACE 124 • ROCK products • August 2017 Aggregates Industry Almanac Publicly Traded Companies and intersegment revenues, totaled $182.9 million, which was 26 percent higher than the same quarter last year. The average net sales price for this quarter was $106.95 per ton, 6 percent higher than the same quarter last year. Total Cement segment sales volumes for the quarter were more than 1.5 million tons, 21 percent higher than the same quarter a year ago. Like-for-like average net cement sales prices and sales volumes increased 4 percent and 7 percent, respectively, versus the first quarter of fiscal 2017 (compar- ison excludes cement sales from the Fairborn Business since its acquisition date). Operating earnings from cement for the first quarter were a record $43.2 million and 37 percent greater than the same quarter a year ago. The earnings improvement was driven primarily by improved average net cement sales prices and sales volumes and earnings from the Fairborn Business. During the quarter, its Nevada cement plant experienced reduced production in connection with the installation of certain pollution control equipment to enable the plant to burn solid-waste fuels. The ability to use solid-waste fuel will lower energy costs in the future. The reduced production negatively affected the absorption of operating costs at the cement plant during the quarter. The project is expected to be completed in the fall. LafargeHolcim Notes U.S. Business Gains in Second Quarter LafargeHolcim reported that net sales rose 3.6 percent like- for-like in the second quarter of the year. Beat Hess, chairman and interim CEO said, "LafargeHolcim delivered positive earnings growth for the fifth consecutive quarter supported by favorable pricing, cost discipline and synergies. The unique strengths of our balanced portfolio are once again evident in our results with key countries such as the United States, India, Nigeria and, notably this quarter, Mexico making significant contributions to earnings, more than offsetting headwinds in some of our markets. On that basis, and with our performance to date, we remain con- fident that we will achieve our full year guidance and our 2018 targets." North America made a strong contribution to operating EBITDA adjusted growth – up 16.5 percent on a like-for-like basis – despite the effect of heavy rain on volumes of cement and aggregates in parts of the United States and Canada. In both markets, cost savings in logistics and manufacturing contributed to positive results, while the U.S. continued to benefit from favorable pricing. Cement volumes in the U.S. for the second quarter were down on the prior year. Aggregates volumes in the U.S. were also impacted by unfavorable weather conditions which constrained deliveries for a period during the quarter. Oper- ational enhancements undertaken in the second quarter should further benefit earnings going forward, according to the company. Despite lower volumes, performance in Canada remained stable in the second quarter thanks to cost efficiency mea- sures, notably in the west of the country. Western Canada saw a modest recovery while volumes in Eastern Canada were negatively impacted by weather and operational challenges. Cemex Second Quarter Net Income Spikes Higher Cemex, S.A.B. de C.V. announced that consolidated net sales reached $3.6 billion during the second quarter of 2017, an increase of 2 percent on a like-to-like basis for the ongoing operations and adjusting for currency fluctuations, versus the comparable period in 2016. The increase in consolidated net sales on a like-to-like basis was due to higher prices of products in local currency terms in Mexico and the U.S., as well as higher volumes in its Europe region, the company said. Cemex's operations in the United States reported net sales of $916 million in the second quarter of 2017, an increase of 4 percent on a like-to-like basis from the same period in 2016. Net income was $289 million in the second quarter of 2017, an increase of 41 percent compared to the same period last year. For the first half of the year it reached $626 million, the highest net income for this period since 2008. Operating earnings before other expenses, net, in the second quarter decreased by 11 percent, to $478 million. Con- trolling interest net income during the quarter improved to $289 million, from an income of $205 million in the same period last year. Fernando A. Gonzalez, chief executive officer, said, "Our second quarter operating and financial performance was essentially in line with our expectations as of the first quar- ter: good results in Mexico, the U.S. and Europe; increasing challenges in Colombia and Egypt, and to a much lesser extent, the Philippines. In addition, we continue to further strengthen our balance sheet where the financial markets have allowed us to execute on our targets a bit faster than we anticipated earlier in the year."

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