Rock Products


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

Issue link:

Contents of this Issue


Page 66 of 123 ROCK products • August 2018 • 65 for the four acquisitions completed since the last update. •  Stoner Sand (Missouri). Stoner Sand is a high synergy, bolt-on aggregates acquisition that is an excellent fit with the company's existing operations in the region. Summit closed on the acquisition of Stoner Sand in late February 2018. •  Midwest Minerals (Kansas). Midwest Minerals is an aggre- gates company with extensive, high-quality reserves. The acquisition expands Summit's market presence in south- east Kansas. Summit closed on the acquisition of Midwest Minerals in April 2018. •  Day Concrete (Oklahoma). Day Concrete is long-established ready-mix concrete company that has a leading position in its local market, and is an excellent fit with the company's existing aggregates and ready-mix concrete operations in the state. Summit closed on the acquisition of Day Concrete in April 2018. • Superior Ready-Mix (Kentucky). Superior Ready-Mix is a ready-mix concrete company that enhances the company's market coverage in the region and will integrate seamlessly into existing operations. Summit closed on the acquisition of Superior Ready-Mix in April 2018. "We believe that demand for construction materials could increase meaningfully during the second half of 2018, given recent feedback from our customers and operating com- panies," stated Hill. "Our outlook for north Texas, Austin, Vancouver, Utah and the Carolinas has improved within the last 90 days, given strong growth in single family residen- tial, stable growth in low-rise commercial and accelerating growth in state public lettings. Despite the slow start to the year, the combination of accelerating organic growth within our larger platform markets, together with a solid pipeline of acquisition targets, positions Summit for another strong year ahead." Granite Construction Materials Revenue Spikes in First Quarter Granite Construction reported that revenue increased to $563.4 million, up 20.3 percent year-over-year for the quar- ter ended March 31, 2018. Construction Materials revenue increased 32.5 percent to $45.7 million, compared with $34.5 million last year. However, the company reported a net loss of $11.4 million, compared to a net loss of $23.8 million in the first quarter. First quarter 2018 results include the impact of acquisi- tion expenses related to Granite's announced and pending acquisition of Layne Christensen Co. and from its recently completed purchase of LiquiForce. "We were pleased to deliver solid results with a record-rev- enue first quarter, carrying through some of the momentum we created in 2017," said James H. Roberts, president and chief executive officer of Granite Construction. "All three segments delivered strong revenue growth and improved year-over-year margins. Our Construction segment led the way, with the Construction Materials segment producing strong top-line revenue growth in our seasonally weak- est quarter. The Large Project Construction segment again produced solid revenue growth and improved profitability, driven primarily by the contribution of newer projects in our portfolio. While work on under-performing, mature projects had less impact in the first quarter, it remained a drag on overall profitability, and it is expected to negatively impact margins through much of 2018. "The near- and long-term outlook for demand and funding of infrastructure investment continues to improve. Backlog trends remain steady, even with more than 20 percent rev- enue growth in the first quarter. Large Project Construction segment backlog at $2.61 billion and Construction segment backlog at nearly $1 billion points to continued solid demand," Roberts said. "The integration of LiquiForce is moving along as planned, and the integration planning related to our announced acquisition of Layne Christensen is progressing very well. Considering the progress that our joint integration teams have made to date, we are increasingly confident that this deal represents the ideal combination of value creation for all stakeholders. We remain on track for a successful clos- ing in the second quarter of 2018." Forbes magazine recently recognized Granite as one of Amer- ica's Best Mid-Size Employers for the third year in a row. The annual Forbes ranking honors employers based on an inde- pendent survey asking how likely employees would be to recommend their employer – and other employers in their respective industries – to someone else. "We owe this honor to our employees who are the heart and soul of our company," said Roberts. "Our employees walk and talk our core values, the cornerstone of our success for nearly a century. It is because of them that we strive to create rewarding careers while growing our business safely and profitably." Eagle Materials Buoyed by Heavy Materials Earnings Eagle Materials Inc. reported record revenue of $1.4 billion, up 14 percent for fiscal year 2018; and record revenue of $284.7 million, up 2 percent for its fiscal fourth quarter ended March 31, 2018. Eagle's Oil and Gas Proppants segment reported fiscal 2018 revenue of $85.5 million, an increase of 147 percent, primar- ily reflecting a 170 percent increase in frac sand sales volume. The fiscal 2018 operating loss was $6.4 million versus an operating loss of $14.6 million in the prior year. Eagle's Oil and Gas Proppants segment reported fourth quarter reve- nue of $22.6 million, an increase of 43 percent, primarily Aggregates Industry Almanac Publicly Traded Companies

Articles in this issue

Links on this page

Archives of this issue

view archives of Rock Products - AUG2018