Aggregates Manager

June 2013

Aggregates Manager Digital Magazine

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Page 42 of 228

FEDERAL SPENDING by George Reddin George H. Reddin is a principal in FMI's Investment Banking practice. He can be reached at 919-785-9286 or at M erger and acquisition activity remains slow, but steady, as the outlook for many construction markets remains flat and disappointing. Spending on U.S. construction projects fell in March, as the biggest drop in government projects in more than a decade overwhelmed strength in home building. Construction spending in 2012 increased 9.8 percent; however, the first quarter saw year-over-year decreases in two of the three months. Last year marked the first annual gain after five straight years of declines; however construction spending is still well below healthy levels. Housing is helping to support building activity in the face of weakness in government projects, but many economists are expecting additional decreases in federal activity in the coming months as different agencies cope with across-the-board spending cuts that went into effect in March. Recent transactions Northern Frac Proppants LLC, based in Houston, has acquired land and frac sand reserves near Black River Falls, Wis., from Goose Landing Sand Co., LLC. Northern Frac Proppants LLC produces frac sand, which is used by oil and natural gas companies for hydraulic fracturing to enhance the recovery rates of Stock Report Company hydrocarbons from oil and natural gas wells. Summit Materials, LLC has acquired Westroc, Inc., and certain aggregates, ready-mix concrete, asphalt, and paving assets from Lafarge North America, Inc. Westroc, based in Pleasant Grove, Utah, operates two aggregates sites and seven readymix concrete plants along the Wasatch Front. The Lafarge, Wichita Assets are comprised of two aggregates operations, three ready-mix concrete plants, and one asphalt plant located in metro Wichita and the broader southeast Kansas area. Summit acquired mineral reserves in excess of 100 million tons through these transactions. Other news Votorantim Cimentos SA, Brazil's largest cement producer, filed in April with the SEC to raise up to $5.4 billion in an initial public offering. Founded in 1933, Votorantim Cimentos SA is the eighth largest cement producer globally based on production capacity, with operations in the Americas, Europe, Africa, and Asia. The company produces and sells a complete portfolio of building materials, which includes cement, aggregates, ready-mix concrete, mortar, and other building materials. AM U.S. On-Highway Diesel Fuel Prices Ticker Current Value 52-Week 52-Week High Low 5/6/2013 One Week One Year United States $3.845 -0.006q -0.212q East Coast $3.863 -0.023q -0.245q $3.986 -0.007q -0.246q Central Atlantic $3.911 -0.023q -0.283q Lower Atlantic Cemex, S.A.B. de C.V. CX $11.86 p $12.71 $4.94 CRH plc CRG $21.98 q $23.77 $16.90 Eagle Materials Inc. EXP $69.42 p $72.31 $29.64 New England Granite Construction Inc. GVA $28.44 q $37.74 $21.38 Heidelberg Cement AG HEI $71.97 q $76.52 $42.07 Holcim Ltd. HOLN $76.71 q $83.32 $52.17 Martin Marietta Materials, Inc. MLM $106.70 p $108.43 $63.64 MDU Resources Group, Inc. MDU $26.51 p $27.00 $19.59 Texas Industries Inc. TXI $65.22 p $67.44 $30.10 United States Lime & Minerals, Inc. USLM $46.80 q $55.13 $41.25 U.S. Concrete $15.75 p $15.80 $4.21 Vulcan Materials Co. USCR VMC $53.48 p $59.48 Sources: New York Stock Exchange, NASDAQ, and Wall Street Journal Market Watch. Currency conversion calculated on 5/3/13. DataMining_AGRM0613.indd 41 DATA MINING • 41 Housing increases more than offset by falling $32.31 $3.804 -0.027q -0.217q Midwest $3.868 +0.029p -0.094q Gulf Coast $3.735 -0.022q -0.227q Rocky Mountain $3.804 -0.006q -0.243q West Coast $3.923 -0.026q -0.389q West Coast less California $3.830 -0.003q -0.396q California $4.001 -0.046q -0.384q Source: U.S. Energy Information Administration (dollars per gallon, prices include all taxes). 5/16/13 8:54 AM

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