Rock Products

NOV 2014

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 11 of 61 ROCK products • NOVEMBER 2014 8 I N D U S T R Y N E W S IN THE KNOW IN THE KNOW the heritage product line's gross margin (excluding freight and deliv‐ ery revenues). The heritage hot mixed asphalt product line reported a 13 percent increase in net sales. Heritage aggregates product line pro‐ duction increased 4 percent in response to greater demand. Direct production cost per ton grew slightly as increased leveraging of fixed costs were offset by higher repair and supply costs and weather constraints in certain areas. Further, freight costs increased for transfers of materials within the com‐ pany's long‐haul distribution network, notably driven by rail inefficiencies, car availability and track congestion. The increased repair, supply and freight costs added $12.7 million to cost of sales for the quarter and lim‐ ited margin expansion for the heritage aggregates business. Associates from Luck Companies re‐ cently accepted a Gold Medal in the 2014 Governor's Environmental Excel‐ lence Awards from Virginia state offi‐ cials. The company was honored for commitment to sustainability across all business units (Luck Stone, Charles Luck Stone Center, Har‐Tru Sports, Luck Development Partners), resulting in significant improvements in water con‐ servation, land preservation, waste generation and energy savings. "We are honored to be recognized with this prestigious award for our long‐ standing efforts in environmental stewardship and management," said Charles S. Luck IV, president and CEO of Luck Companies. "We are commit‐ ted to making a difference in the lives of others and building legacies for fu‐ ture generations. Our overarching sus‐ tainability goal is to enable current and future generations to thrive socially, economically, and environmentally." Luck Companies Earns Environmental Excellence Award FAST FACT Company was honored in the 2014 Governor's En- vironmental Excellence Awards. PB Materials Holdings Inc. (PBM) com‐ pleted the acquisition of substantially all of the assets of Damron Sand & Gravel. Damron is a leading provider of sand and gravel to Lubbock, Texas, and surrounding markets with a significant reserve position in the region. The acquisition will expand PBM's ex‐ isting aggregate and ready‐mix con‐ crete operations in west Texas and eastern New Mexico. It will position the company to better serve the mar‐ ketplace and its customers and capi‐ talize on regional growth. David Vickers, chief executive officer of PBM, commented, "We are excited to add Damron and its long history of successfully supplying sand & gravel to the region to PB Materials. The op‐ erations will augment our existing asset base further enabling PB Mate‐ rials to provide a high level of quality and service to our customers." Patrick Machir, principal at WL Ross & Co. and director of PBM, said, "The acquisition is a sound strategic fit with PB Materials' existing footprint. It will broaden the scope of the com‐ pany's aggregate capabilities and en‐ hance its sand & gravel reserve position." PB Materials Acquires Damron Sand & Gravel FAST FACT The company said the acquisition will ex- pand PBM's existing aggregate and ready- mix concrete opera- tions in west Texas and eastern New Mexico. Alberta, Canada‐based producer Athabasca Minerals Inc. announced its financial results for the three and nine months ended Aug. 31, 2014, which includes record revenue and the second highest quarterly net in‐ come ever. Corporate‐owned aggregate opera‐ tions generated Q3 2014 revenue of $5,982,196, a 206.1 percent in‐ crease over Q3 2013 revenue of $1,954,643. Although revenue from corporate‐owned pits in‐ creased substantially over the com‐ parative quarter, revenue from corporate‐owned pits for the Q3 YTD 2014 decreased by 1.8 percent to $10,805,234 from Q3 YTD 2013 revenue of $11,000,678. Q3 aggregate demand at the Susan Lake Pit increased significantly com‐ pared with the first half of the year, and aggregate demand is expected to remain active through Q4 2014. Man‐ agement continues to work with ESRD regarding a potential boundary change. A detailed soil analysis pro‐ gram has been completed and man‐ agement will continue to work with Aggregates Revenues Driving Athabasca Minerals

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