Rock Products

AUG 2019

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60 • ROCK products • August 2019 www.rockproducts.com subsidies, are contributing to increased lettings activity. Single-family housing starts and permits remain well below peak levels in Summit's major markets. Aggregates net revenues increased by 30.3% to $87.9 million in the first quarter 2019, when compared to the pri- or-year period. Aggregates adjusted cash gross profit margin improved to 43.2% in the first quarter 2019, compared to 41.5% in the prior-year period, as pricing gains exceeded input costs. Organic aggregates sales volumes increased 6.6% in the first quarter 2019, when compared to the prior-year period. Organic average selling prices on aggregates increased 6.3% in the first quarter 2019 when compared to the prior year period due to improvements in prices within both the West and East segments during the period. Cement segment net revenues declined 0.7% to $37.3 million in the first quarter 2019, when compared to the prior-year period. Cement adjusted cash gross profit margin decreased to 3.1% in the first quarter, compared to 19.5% in the prior-year period, as margins were impacted by lower pro- duction levels in 2019. Organic sales volume of cement increased 1.0% in the first quarter, when compared to the prior-year period. Organic average selling prices on cement decreased 1.5% in the first quarter, when compared to the prior-year period due to changes of the customer mix across its geographies. • The West Segment reported operating loss of $11.6 mil- lion in the first quarter 2019, compared to a loss of $6.1 million in the prior-year period. Aggregates revenue in the first quarter increased 12.3% over the prior-year period as a result of contributions from acquisitions, resulting in a 4.2% increase in organic volumes and a 4.7% increase in organic average sales prices. • The East Segment reported operating loss of $17.3 mil- lion in the first quarter 2019, compared to a loss of $20.9 million in the prior-year period. Aggregates revenue increased 36.8%, primarily due to increases resulting from its acquisition program as well as a 9.1% and 7.6% increase in organic volumes and average sales prices, respectively. As previously announced, in February 2019 Summit extended and amended its revolving credit facility, which now has maximum availability of $345 million and matures in 2024. Further, in March 2019, Summit retired $250 mil- lion of 8.5% senior notes due 2022 by issuing $300 million of 6.5% senior notes due in 2027. Brian Harris, CFO of Summit Materials, stated, "We were very pleased with both of those transactions, which increased our overall liquidity position and lowers our cash interest outlays in the future. Further, we are pleased to reaffirm our guidance for 2019 capital expenditures of approximately $160 million to $175 million." Cemex U.S. Business Up 3% in First Quarter Cemex, S.A.B. de C.V. announced that, on a like-to-like basis for the ongoing operations and adjusting for foreign exchange fluctuations, consolidated net sales increased by 1%, reach- ing $3.2 billion during the first quarter of 2019 versus the comparable period in 2018. Operating EBITDA decreased by 3% on a like-to-like basis during the first quarter of 2019 to $562 million on a year-over-year basis. The increase in quarterly consolidated net sales was due to higher prices of its products, in local-currency terms in all of its regions, as well as higher volumes in its three core products in Europe, and in ready-mixed and aggregates in the United States. Cemex's operations in the United States reported net sales of $878 million in the first quarter of 2019, an increase of 3% from the same period in 2018. Operating EBITDA decreased by 1% to $130 million from $131 million in the same quarter of 2018. • Operating earnings before other expenses, net, decreased by 14% in the first quarter, to $294 million. •  Controlling interest net income during the quarter was $39 million, from $20 million in the same period of 2018. •  Operating EBITDA decreased by 3%, on a like-to-like basis, during the quarter on a year-over-year basis, to $562 million. •  Operating EBITDA margin during the quarter decreased to 17.4% from 17.9% in the same period in the previous year. • Free cash flow after maintenance capital expenditures for the quarter was negative $337 million. Fernando A. Gonzalez, chief executive officer of Cemex, said, "We are pleased with the 1% top-line growth we achieved during the first quarter, despite important volume declines in our two most important markets: Mexico and the United States. During the quarter, we enjoyed improved pricing per- formance in all our regions with favorable volume dynamics in Europe. In the United States, ready-mixed and aggregates volumes also grew despite adverse weather in part of our footprint. In addition, operating cash flow performance was bolstered by the ongoing successful implementation of our A Stronger Cemex initiatives.» Eagle Materials Reports Flat Revenue; Plans to Sell Business Units Eagle Materials Inc. reported financial results for fiscal year 2019 and the fiscal fourth quarter ended March 31. For 2019, the company is reporting: • Revenue of $1.4 billion, flat with the prior year. • Net earnings per diluted share of $1.47, down 72%. • Adjusted net earnings per share of $5.05. For the fiscal fourth quarter the company is reporting: • Revenue of $284.7 million, flat with prior year. Aggregates Industry Almanac Publicly Traded Companies

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