Rock Products

APR 2019

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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Page 12 of 79 ROCK products • April 2019 • 11 IN THE KNOW FAST FACT The company's 2019 guidance reflects the acquisition of ACG Materials, a producer of specialty materials and aggregates. quarter, our first as an independent, publicly-held company, which we believe has set the stage for a return to growth in 2019. We successfully completed the separation from Trinity Industries Inc. on Nov. 1, 2018, exe- cuted the acquisition of ACG Materials in our Construction Products Group, reopened a previously idled barge facility in Transportation Products responding to the ongoing market recovery, and advanced the roll-out of our continuous improvement program to expand margins across our Energy Equipment businesses. "The benefits of our broad infrastruc- ture market exposure were clear in the fourth quarter, as contributions from our Transportation and Energy Equip- ment segments offset the effect of record rainfall in Texas which hampered our aggregates business," Carrillo said. "Order trends were positive in the fourth quarter, setting the stage for future growth. We were pleased to add to our wind tower backlog with an order we received for $38 million in December; our book to bill ratio for inland barges continued to be strong, and we received several railcar com- ponents orders from new customers," Carrillo noted. The company's 2019 guidance reflects the acquisition of ACG Materials, a producer of specialty materials and aggregates, which closed on Dec. 5, 2018. Commenting on the outlook for 2019, Carrillo noted, "We see positive revenue and earnings momentum across all of our operating segments in 2019. The mid-point of our adjusted 2019 EBITDA guidance range reflects 18 percent year-over-year growth, after absorbing additional standalone company costs and initial pricing on a long-term com- ponents contract. We remain focused on our stage-one priorities: growing our Construction Products business, improving margins in Energy Equip- ment, expanding our Transportation Products business as markets continue to recover, and operating a lean corpo- rate structure. "The ACG Materials acquisition sig- nificantly strengthened our presence in attractive specialty materials and aggregates markets in our Construction Products business," Carrillo concluded. "The acquisition also brought with it a robust pipeline of bolt-on acquisitions and organic investment opportunities that are expected to improve our long- term return on invested capital."

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