Rock Products

DEC 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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14 • ROCKproducts • December 2018 I N D U S T RY N E W S IN THE KNOW market position and reserve base in Idaho. Summit closed on the acquisi- tion in October. • Aggregate Reserves (Georgia). Summit acquired property in the greater Atlanta area containing over 100 million tons of permitted reserves and an active quarry, which is currently leased to a third party through mid 2021. Initially, Summit will receive royalty payments through the end of the lease, at which time Summit will take over quarry operations. Summit closed on the acquisition in October. Tom Hill, CEO of Summit Materials, stated, "We experienced significant inclement weather in the third quarter, as well as continued inflationary cost pressures in our businesses beyond our expectations. While we achieved organic volume and price increases in our aggregates and products during the third quarter, our net income declined and our Adjusted EBITDA remained flat in the third quar- ter of 2018 as compared to the third quarter of 2017, reflecting lower contributions from our cement segment and Houston oper- ations together with inflation in our variable costs. We had expected normal weather going into the third quarter; instead, weather patterns continued to have a significant negative impact on most of our operating geographies." Organic sales volumes in Summit's Cement segment were impacted by a combination of high precipitation levels, together with competitive pressures along the Mississippi River corridor. Further, Summit's Houston operations were affected by a wetter than normal third quarter, as rainfall in many parts of Texas reached all-time record levels in September. Summit's average selling prices on both materials and products gained traction through the third quar- ter, which partially offset higher raw materials, freight, labor and fuel costs. "Underlying demand conditions in most of our markets are healthy and are expected to remain so into 2019," continued Hill. In Summit's public markets, state transportation funding measures in Texas, coupled with steady increases in federal subsidies, are con- tributing to increased lettings activity. Single family housing starts and per- mits remain well below peak levels in Summit's major markets. Tom Hill CST Industries | 903 E 104th Street, Suite 900 | Kansas City, MO 64131 | 844-44-TANKS FLAT-PANEL JACK-BUILT STORAGE SOLUTION FULL LINE PRODUCT PORTFOLIO TO OFFER THE RIGHT SOLUTION, EVERY TIME CST is the only tank manufacturer in the world that provides DµDWSDQHOMDFNEXLOWWDQNDFKLPHSDQHOVFDIIROGEXLOWWDQN DQGIDFWRU\ZHOGHGWDQNGHVLJQVDOOFDSDEOHRIVDIHO\DQG HFRQRPLFDOO\EHLQJLQVWDOOHGRQHYHU\GLYHUVHVLWHLPDJLQDEOH World-Class Coatings with OptiBond TM Coating Process 125 Years of Experience (055DWHRI 350,000 Installations in over 125 Countries W O R L D R E C O G N I Z E D L E A D E R I N D R Y B U L K S T O R A G E TECTANK CP ™ WELDED Optimized Design – Reduced Hardware Required/Reduced Penetration Points Industry Leading Gasket – Leak Proof Design Heavy Duty Jacking System – Proof Load Tested and PE Stamped 3UHFRQ´JXUHG0RGHOV$YDLODEOH¨ Lead Time Within 10 Weeks of Order CST OptiBond™ Proprietary Coating – (QVXUHV%HVW4XDOLW\$YDLODEOH Faster Construction Time – 20% Faster Than Chime, 30% Faster Than Welded ® TECTANK FP ®

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