Rock Products

SEP 2018

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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10 • ROCK products • September 2018 IN THE KNOW Georgia and Virginia realized mid-to-high single digit price growth while prices in Alabama, Arizona and Illinois decreased modestly versus the prior year. Reported freight-adjusted pricing in long-haul markets, where locally avail- able aggregates are not available, was negatively impacted by higher distribu- tion costs versus the prior year. Over time, these higher distribution costs will be recovered in higher prices. Additionally, positive trends in back- logged project work along with demand visibility, customer confidence, rising diesel prices, and logistics constraints support continued upward pricing movements for the remainder of the year and into 2019. Same-store unit cost of sales (freight-adjusted) increased 1 percent versus the prior-year quarter as fixed cost leverage and other operating effi- ciencies mostly offset the 30 percent increase in the unit cost for diesel fuel. Excluding the impact of higher diesel prices, same-store unit costs improved 1 percent compared to the prior year. Through June, the company also continued to experience higher than normal distribution costs due in part to last year's storm events. During the second quarter, the company com- pleted the dredging of its coastal Texas port facilities and took possession of the second of its new, more efficient Panamax-class ships. Regarding Vulcan Materials's earn- ings outlook for 2018, Hill stated, "Our business is positioned for continued shipment growth, compounding pric- ing improvements, and further gains in unit profitability in the second half of the year and into 2019." Martin Marietta Materials is reporting record revenues, profits and diluted earnings per share for its second quar- ter. Gross revenues climbed to $1.20 billion, up from $1.06 billion in the prior-year period. The company's gross profit hit $316 million, versus $274 mil- lion in the second quarter of 2017. During the second quarter, aggregates shipments to the company's three primary end-use markets increased, demonstrating the breadth of the over- all construction recovery. However, the limited availability of transportation Martin Marietta Climbs to Record Q2 Revenues; Profits (904)356-6840 9410 Florida Mining Boulevard East Jacksonville, Florida, 32257 Heavy Duty Slurry Pumps Lowest Lead Times Lowest Life Cycle Costs

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