Rock Products

OCT 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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ROCK products • October 2018 • 17 IN THE KNOW services business increased 6 percent, but margin was under pressure. Energy costs were higher in the first half of the year compared with 2017 with increases in bitumen, diesel and gasoline costs. The Materials operations in the United States are organized into four divisions: North, South, Central and West. • Like-for-like sales in the North divi- sion were 4 percent ahead of 2017 as aggregates volume recovery in the second quarter supplemented good price increases across all products. Increased energy costs and margin pressure in its construction busi- ness resulted in operating profit and margin being behind 2017. •  Like-for-like sales in the South division were 10 percent ahead, as volume and price increases across all products were further aided by an early start to the construction season due to favorable weather in some key states. Cost inflation saw margins under pressure; however, with ongoing performance improve- ment initiatives, operating profit and margin were ahead of 2017. • The performance in the Central divi- sion was impacted by rainfall and flooding in the second quarter fol- lowing the colder start to the year, which particularly impacted the construction and asphalt businesses, and like-for-like sales were down 4 percent. Operating profit was also behind, driven by the lower activity and margin pressure. •  The West division delivered a like- for-like sales increase of 12 percent, with strong underlying market demand leading to increased ready mixed concrete and construction sales. Solid margin expansion in both of these business lines led to operat- ing profit increases. With the completion of the Ash Grove acquisition on June 20, CRH is now a leading cement producer in the United States, with the most significant of its operations across Florida, Texas, the Midwest and the Western states. Problem. Solution. Results. 740-927-3464 800-837-3344 CRUSH EVERY JOB AMERICAN-MADE INNOVATION SINCE 1966 ® TM

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