Rock Products

JUN 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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Page 16 of 75 ROCK products • June 2018 • 15 IN THE KNOW domestically produced cement continue to tighten, we anticipate price growth could escalate above current levels in 2019. Cement prices have now risen for six consecutive years in the United States, with no indications of abating. "On a year-to-date basis, we have com- pleted seven acquisitions for total invested capital of $154 million," con- tinued Hill. "Recent acquisitions have served to further establish our leader- ship in well-structured, materials-based markets in Utah, Texas, Oklahoma, Kansas, Kentucky and Missouri. The acquisition pipeline remains very active as we look ahead to the remainder of the year, with multiple transactions currently in various stages of diligence. "Summit's diesel fuel forward purchase program has helped to mitigate the impact of commodity price volatility within our business, particularly given the recent increase in the price of crude oil-linked hydrocarbon products," stated Brian Harris, CFO of Summit Materials. "Diesel fuel represents our single most significant variable cost each year, with an estimated 30 million gallons consumed annually by our operating companies. Our program, which utilizes physical contracts to pre-purchase a portion of our required diesel fuel volumes up to 12 months in advance, provides visibility into our over- all diesel fuel expense each year. To date, we have pre-purchased 62 percent of our current year fuel requirements at an aver- age ultra-low sulfur diesel NYMEX price of less than $1.90 per gal." Aggregates net revenues increased by 9.5 percent to $67.5 million in the first quarter 2018, when compared to the prior-year period. Aggregates adjusted cash gross profit margin declined to 41.5 percent in the first quarter, versus 43.6 percent in the prior-year period. Organic aggregates sales volumes declined 6.8 percent in the first quarter, due mainly to lower organic aggregates sales volumes in the East Segment, where challenging weather impacted working conditions. Organic average selling prices on aggre - gates increased 1.6 percent in the first quarter due to year-over-year improve- ments in prices within both the West and East segments during the period. New Enterprise Completes Strategic Acquisition; Divestiture New Enterprise Stone & Lime Co. Inc. (NESL) of New Enterprise, Pa., announced that on May 4 it acquired certain assets of Popple Construc- tion Inc. and Pioneer Aggregates Inc., consisting primarily of one aggregate plant, one hot mix asphalt plant and a paving laydown business. The acquired facilities are situated between NESL's existing Clifford and Allentown, Pa., locations, allowing ROLLER CHAINS • ENGINEERING CLASS CHAINS • BACKSTOPS • SPROCKETS • CABLE & HOSE CARRIERS • POWER TRANSMISSION PRODUCTS U S T S U B A K I . C O M Total Package WHY RISK GOING WITH ANY OTHER BRAND? Stack the deck in your favor by choosing Tsubaki chains, sprockets and backstops. U.S. Tsubaki's portfolio of Mining products will provide the reliability and durability required to keep your operation running at its best, even in the harshest conditions. U.S. Tsubaki's leading service and engineering support will design the right solutions for your application, minimizing downtime and saving you money. So be an ACE and go ALL IN with Tsubaki! DEAL YOURSELF A WINNING HAND © 2016 U.S. Tsubaki Power Transmission, LLC All Rights Reserved.

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