Aggregates Manager Digital Magazine
Issue link: https://read.dmtmag.com/i/85660
Data W guarded optimism moving forward. Housing appears to have hit bottom and is hile we remain in a period of significant uncertainty, we are be- ginning to get little signs that the worst is behind us and that there is showing signs of modest improvement, albeit from an extreme historic low. Single-family hous- ing put-in-place construction decreased by 5 per- cent in 2011, but is expected to grow 9 percent in 2012 to $116.2 billion. While this is good news, it pales in comparison to the 2005 level of nearly $435 billion. The industry received another shot in the arm with the signing of the most recent federal high- way bill, Moving Ahead for Progress in the 21st Century (MAP-21). While MAP-21 is welcome by the industry, it is a departure from the previous programs in that it is only a two-year program and falls short of the desired long-term commit- ment at increased funding levels. This news in housing and highway construc- tion, while modest, could be the beginning of the recovery for the construction materials sector. All we have to do now is get through the fall elections. Recent transactions Oldcastle Precast, Inc. has acquired the assets of U.S. Concrete's precast concrete operations in California. Additionally, U.S. Concrete, Inc., through its wholly-owned subsidiary, Eastern Concrete Materials, Inc., has entered into a lease and marketing agreement with Granite Ready Mix, Scara-Mix, Inc., and related companies located on Staten Island, N.Y. The company will also market sand, stone, and recycled aggregates on the island. W. R. Grace & Co. has acquired Rheoset In- dustria e Comercio de Aditivos Ltda. Rheoset is a manufacturer of concrete admixtures in Brazil. Oberfields LLC, of Columbus, Ohio, has acquired Wilson Concrete Products, of Centerville, Ohio. The acquisition included Wilson Concrete's equipment, George H. Reddin is a principal in FMI's Investment Banking practice. He can be reached at 919-785-9286 or at greddin@fminet.com. Home and highway markets show signs of improvement trucks, forklifts, and concrete block inventory. Irving Materials, Inc., headquartered in Green- field, Ind., has acquired Rock Industries, Inc.'s aggregate quarries. Rock Industries is based in Plymouth, Ind. Other news Martin Marietta reported increased volume and profit for the second quarter. Overall aggregates segment volume was up 2.8 percent and pricing increased 2.4 percent. The company reported a profit of $36.8 million, up from $35.8 million a year earlier. Revenue increased 18 percent to $545.7 million; however, gross margin fell to 18.7 percent from 21.1 percent. Vulcan Materials Co. reported a second quarter loss of $18.3 million compared with a loss of $8.1 million a year earlier on weaker volume and higher restructuring costs. Revenue slipped 1 percent to $694.1 million. Restructuring costs rose to $4.6 million from $1.8 million a year earlier. AM Stock Report Company Cemex, S.A.B. de C.V. CRH plc Eagle Materials Inc. Granite Construction Inc. Heidelberg Cement AG Holcim Ltd. James Hardie Industries SE U.S. On-Highway Diesel Fuel Prices Ticker Current CX Value High Low $7.35 p 52-Week 52-Week $8.67 2.27 CRG $19.19 q $21.05 $12.66 EXP $39.60 p $40.44 $15.36 GVA $25.05 q $30.49 $16.92 HEI $49.27 p $58.86 $30.16 HOLN $62.69 p $65.66 $43.53 JHX $45.01 p $45.95 $25.23 Martin Marietta Materials, Inc. MLM $75.20 q $90.57 $59.93 MDU Resources Group, Inc. Texas Industries Inc. MDU $22.26 p $23.21 $18.00 TXI $43.44 p $45.68 $21.89 United States Lime & Minerals, Inc. USLM $43.84 q $67.40 $37.31 Vulcan Materials Co. VMC $38.66 q $48.09 $25.06 Sources: New York Stock Exchange, Wall Street Journal Market Watch. Currency conversion calculated on date of close. United States East Coast New England Central Atlantic Lower Atlantic Midwest Gulf Coast Rocky Mountain West Coast 8/7/2012 One Week One Year 3.850 3.869 3.946 3.934 3.806 +0.054 p -0.047 q +0.027 p -0.067 q +0.015 p -0.085 q +0.026 p -0.119 q +0.031 p -0.071 q 3.851 +0.069 p -0.024 q 3.752 3.813 3.959 West Coast less California 3.883 California +0.056 p -0.116 q +0.084 p -0.038 q +0.061 p +0.010 p +0.067 p NA 4.023 +0.056 p -0.044 q Sources: U.S. Energy Information Administration (dollars per gallon, prices include all taxes). AGGREGATES MANAGER September 2012 33