Rock Products is the aggregates industry's leading source for market analysis and technology solutions, delivering critical content focusing on aggregates-processing equipment; operational efficiencies; management best practices; comprehensive market
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22 • ROCK products • March 2018 www.rockproducts.com IN THE KNOW aggregates volume growth of 5.6 percent, driven by strong nonresi- dential construction and improving public construction activity. Total cement shipments increased 1.7 per- cent. Ready mixed concrete shipments decreased 4.7 percent overall with lower energy-sector shipments offset- ting strong demand in the Dallas/Fort Worth and Denver markets. Asphalt shipments increased 1.2 percent for the fourth quarter. Aggregates product line shipments to the infrastructure market increased slightly over the prior-year fourth quar- ter. Continued underinvestment in the nation's infrastructure, coupled with marginal construction activity from the FAST Act and ongoing project delays, limited the growth in overall infra- structure shipments. However, the West Group and Southeast Group, which include states with robust DOT budgets, reported growth in infrastructure ship- ments. Overall, aggregates product line shipments to the infrastructure market comprised 38 percent of fourth-quarter aggregates product line volumes, well below the Company's most recent five- year average of 43 percent. Aggregates product line shipments to the nonresidential market decreased 7 percent during the fourth quarter. While the Southeast Group reported s t ro n g i n d u s t r i a l c o n s t r u c t i o n growth, the West Group, consistent with management's expectations, reported a double-digit decline in nonresidential shipments due to the completion of several large ener- gy-related projects in 2016 that were not immediately replaced in 2017. Management expects the next wave of these projects to bid in 2018. The nonresidential market represented 31 percent of fourth-quarter aggregates product line shipments. Aggregates product line shipments to the residential market increased 9 per- cent during the fourth quarter, driven by continued strength in housing across the Company's geographic footprint, partic- ularly in the western and southeastern United States. Notably, Texas, Flor- ida, North Carolina, Georgia, South Carolina and Colorado, key geographies for the Building Materials business, comprised six of the top ten states for growth in single-family hous- ing unit starts for the twelve months ended December 2017. The residen- tial market accounted for 24 percent of fourth-quarter aggregates product line shipments. FAST FACT Fourth quarter consoli- dated total revenues were $970.5 million, versus $948.8 million in 2016. Full-year 2017 consolidat- ed total revenues were $3,965.6 billion, versus $3,818.7 billion in 2016.