Rock Products

JUN 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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10 • ROCKproducts • June 2019 IN THE KNOW visibility and customer confidence support continued upward pricing movements throughout 2019. First quarter same-store unit cost of sales (freight-adjusted) increased 3% compared to the prior-year quarter due in part to planned higher repair and maintenance costs in advance of the construction season. Unit cost of sales in California was negatively impacted by record rainfall. The company remains focused on compounding improve- ments in unit margins throughout the cycle through fixed cost leverage, price growth and operating efficiencies. Tom Hill, chairman and chief executive officer, said, "Our first quarter results represent a good start to the year and are consistent with our full-year expectations. Broad-based shipment growth, compounding price improve- ments and solid operating efficiencies in our aggregates business contributed to 17% growth in total revenues and 29% growth in operating earnings. These results demonstrate the strength of our unique aggregates-centric busi- ness model. "Aggregates segment gross profit increased from $3.66 per ton to $4.07 per ton. This double-digit improve- ment in first quarter unit profitability builds on last year's results, and we are well positioned for further gains in our industry-leading unit profitability. "Our key markets are benefitting from both robust growth in public construc- tion demand and continued growth in private demand. Leading indicators, such as construction award activity, signal broad-based shipment growth across our footprint. Aggregates pricing momentum continues to improve – con- sistent with our full-year expectations. As a result, we reiterate our full-year expectations for 2019 earnings from continuing operations of between $4.55 and $5.05 per diluted share and Adjusted EBITDA of between $1.250 and $1.330 billion." Tom Hill

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