Summit Materials’ cement business grows revenue in 2016

Print this page

US: Summit Materials cement business’ sales revenue rose by 49% year-on-year to US$250m in 2016 from US$168m in 2015. Its sales volumes of cement grew by 37% to 2.36Mt from 1.72Mt. Its adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) grew by 51% to US$113m from US$74.8m. It attributed the improvement to higher prices, cost reductions production efficiencies and increased sales volumes due to the acquisition of the Davenport cement assets in July 2015

“Our cement business represents a clear catalyst for growth heading into 2017,” said Tom Hill, chief executive officer of Summit Materials. “Limited domestic production capacity and continued growth in US demand have combined to create opportunities for sustained growth in industry industry pricing. During the fourth quarter, our cement segment generated organic price and volume growth of 6.8% and nearly 1%, respectively. Looking ahead to the remainder of 2017, we anticipate continued adjusted EBITDA growth in our cement business, as supported by sustained growth in organic cement prices and sales volumes along the Mississippi River corridor.”

Last modified on 01 March 2017

URL: https://globalcement.com/news/item/5841-summit-materials-cement-business-grows-revenue-in-2016

© 2019 Pro Global Media Ltd. All rights reserved.