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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8 • ROCK products • June 2018 IN THE KNOW internal plans and full-year expectations despite difficult weather and higher than anticipated energy costs. Key lead- ing indicators, as well as our shipment patterns through the first quarter and through April, support our full-year volume expectations. Aggregates pricing momentum continues to improve, sup- ported by demand visibility, higher diesel prices, and tight logistics capacity. And as seen in our first quarter results, we've begun to turn the corner with respect to cost challenges faced in 2017. As such, we reiterate our full-year expectations for 2018 earnings from continuing oper- ations of between $4.00 and $4.65 per diluted share and Adjusted EBITDA of between $1.150 and $1.250 billion." First-quarter Aggregates segment gross profit increased 7 percent to $148 mil- lion, or $3.66 per ton. Solid operating disciplines and the absence of one-time costs (e.g. California flooding) experi- enced in the prior year's first quarter helped offset a 26 percent increase in the unit cost for diesel fuel, the planned shut- down of three large facilities for repairs ahead of the construction season, and above normal distribution costs due to lingering storm-related ship and barge movement inefficiencies. The company has taken possession of one of its two new, more efficient, Panamax-class ships, and expects to take possession of the second ship during the second quarter. First-quarter aggregates shipments increased 6 percent (1 percent on a same ‐ store basis) versus the prior year's quarter. After being down 3 per- cent through February, same-store daily shipment rates for aggregates were up 7 percent year-over-year in March, reflect- ing demand fundamentals consistent with our full-year expectations. Shipments in Arizona, California, Flor- ida and coastal Texas experienced double-digit gains due to solid demand growth and the start of some large proj- ects. Shipment growth in other Texas Problem. Solution. Results. 740-927-3464 800-837-3344 CRUSH EVERY JOB AMERICAN-MADE INNOVATION SINCE 1966 ¨ TM

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