Rock Products

MAR 2018

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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16 • ROCK products • March 2018 www.rockproducts.com IN THE KNOW Condor Models Feature: • Classic Eagle Iron Works outboard bearings, mounting points, rising current classifier and adjustable weirs • Class 1 Dodge reducer • U.S. Steel construction FAST FACT For the full year 2017, total revenues were $3.89 bil- lion, an increase of $298 million, or 8 percent. Gross profit was $1.0 billion, in line with the prior year. markets continues to recover, and public demand appears to be firm- ing up after a disappointing 2017. The pricing climate for our materials remains positive, supported by solid demand visibility, rising diesel prices, rising cement prices, and expanding contractor margins. For 2018 we expect same-store aggregates ship- ment growth of 4 to 6 percent and aggregates pricing growth of 3 to 5 percent, albeit with significant vari- ability across individual markets. "We also expect our margin perfor- mance to return to its longer-term trend of continuous, compounding improvements," Hill said. "Weath- er-related cost pressures faced in 2017 should not repeat, and rising diesel and distribution costs should flow-through to pricing, although with a lag. Our record safety performance in 2017 underscores our confidence in the strength of our core operating disciplines. Tax reform and the acqui- sition of Aggregates USA will also support growth in earnings and cash flow. In total, we expect 2018 net earn- ings of between $4.00 and $4.65 per diluted share and Adjusted EBITDA of between $1.150 and $1.250 billion." Fourth quarter aggregates shipments increased 7 percent (5 percent same- store basis) versus the prior year's quarter. Shipment trends rebounded in November and December after a sluggish, wet start to the quarter in October. Fourth quarter shipments improved markedly in California and across the Southeast, with most markets experiencing double-digit gains. In con- trast, shipment rates continued to lag in Houston and other storm-impacted Gulf Coast markets, with fourth quarter shipments approximately 10 percent below the prior year in these areas. For the quarter, freight-adjusted aver- age sales price for aggregates increased to $12.95 per ton, a $0.16 or 1 percent gain versus the prior year, despite a negative geographic and product mix impact. Excluding mix impact, aggre- gates price increased 2 percent. Full year average sales price for aggregates, adjusted for mix, increased 4 percent, in line with expectations. Pricing remained particularly strong in California (up 7 percent) and Geor- gia (up 9 percent) supported by strong visibility to continued demand recov- ery. Texas, particularly coastal Texas, experienced relative pricing weakness

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