Rock Products

JUN 2013

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 9 of 67

IN THE KNOW Vulcan Aggregates Revenue Up First Quarter FAST FACT PRODUCER NEWS Vulcan Materials Co. posted a net loss of 42 cents per share in the first quar‐ ter of 2013, greater than the prior‐ year quarter loss of 40 cents per share. The Zacks Consensus Estimate for the quarter is a loss of 36 cents per share. Vulcan Materials posted a net loss of 42 cents per share in the first quarter of 2013, but aggregates revenue was up. Total revenue of $538.2 million sur‐ passed the Zacks Consensus Estimate of $514 million by 4.7 percent. Total revenue also increased 0.4 percent from the prior‐year quarter, driven by price increase in the aggregates seg‐ ment and volume growth in ready mix concrete and cement. Top‐line growth mostly benefitted from the increase in private construc‐ tion activity, especially residential. Total revenue comprised $504.6 of net sales and $33.6 million of delivery rev‐ enues. Adjusted EBITDA was $26.0 million, down 44.7 percent from the prior‐year quarter. Selling, adminis‐ trative and general (SAG) costs de‐ clined 0.3 percent from the prior‐year quarter to $64.7 million attributable to Vulcan's cost‐saving efforts. Aggregates revenues rose 0.3 percent to $325.4 million (including inter‐ segment sales) in the quarter as gains from price increases were partially offset by volume declines and strong year‐ago comparisons, which in‐ cluded favorable weather conditions in 2012. Aggregates shipments (vol‐ umes) declined 5.0 percent year‐ over‐year in the quarter. Average sales price increased 5 percent due to improvement in most markets, ac‐ cording to company Chairman and CEO Don James. Don James The company is witnessing a growing demand for private construction, in‐ cluding residential housing starts and contract awards for non‐residential buildings, following a steady recovery in the overall housing industry. Due to growth in housing construction ac‐ tivity, Vulcan saw some shipment growth in the states of Arizona, Cali‐ fornia and Florida, with each state growing a double‐digit percentage in‐ crease in the quarter. AGC, ARTBA Support Secretary of Transportation Pick "It is encouraging that President Obama has decided to nominate someone who has first‐hand experience with the significant challenges posed by our chronic under‐invest‐ ment in infrastructure and years‐long and broken regula‐ tory review process," stated Stephen Sandherr, CEO of The Associated General Contractors of America (AGC). "Char‐ lotte Mayor Anthony Foxx has a unique opportunity to pro‐ mote new sources of revenue to address chronic shortfalls in federal funding for our aging network of highways, bridges, airports and transit systems. In addition, he will be well suited to ensure that the Department of Transportation takes the steps required in the most recent surface trans‐ portation legislation to significantly reduce the time it takes for federal officials to approve new transportation projects. We will never be able to compete globally if it takes over a decade to approve new ways of moving goods and services from one point to another in this country. Assuming his 8 ROCKproducts • JUNE 2013 prompt confirmation, Mayor Foxx can count on the support of the commercial construction industry for his efforts to ad‐ dress funding shortfalls and eliminate red tape." FAST FACT N AT I O N A L N E W S Two leading groups tracking federal transportation con‐ struction funding and policy issued statements favorable to President Obama's nomination of Charlotte, N.C., Mayor An‐ thony Foxx to succeed Secretary of Transportation Ray La‐ Hood. Both AGC and ARTBA released positive statements about President Obama's nomination of Anthony Foxx to succeed Secretary of Transportation Ray LaHood. Citing feedback from North Carolina construction interests, American Road and Transportation Builders Association (ARTBA) President Peter Ruane added, "Anthony Foxx has demonstrated that he sees the intersection of transporta‐ tion infrastructure investment and economic development. As mayor of Charlotte, he's been a thoughtful voice in advo‐ cating for development of all modes of transportation in order to help spur the local economy, create jobs and im‐ prove mobility."

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