Displaying items by tag: US
US: Summit Materials has reported increased net revenue, operating income and gross profit in the second quarter of 2015, which ended on 30 June 2015.
"During the second quarter of 2015, we produced significant growth in net revenues and margins across all of our lines of business. This strong improvement reflects the steady demand improvement in all of our regions, despite some weather-related challenges, mainly in Texas and Kansas, and our disciplined focus on price optimisation across our vertically integrated lines of businesses. We achieved this while also expanding our adjusted EBITDA margin by 300 basis points and generating incremental margins in excess of 50%. The success of our acquisition strategy was also evident in our results, with more than half of our profit growth contributed by our accretive acquisitions," said Tom Hill, president and CEO of Summit. "We believe our sustained progress is a direct result of the steps we have taken to expand our business into attractive markets and establish leadership positions throughout our diversified footprint. Our completion of the Davenport assets acquisition was an exciting milestone for our company and significantly advanced our position as a leading cement producer in the Midwest. We are now better positioned to continue enhancing our materials earnings exposure and overall profitability as we integrate these assets onto our platform. As we look to the back half of 2015, we plan to capitalise on the improving demand environment to improve our profitability while also remaining opportunistic with our capital to further expand our businesses in select target markets."
In the second quarter 2015, net revenue increased by 12.5% to US$329m. The increase in net revenue was primarily attributable to an increase in volumes across all lines of business, led by the West and Central regions. Net revenue grew organically by 3.2% to US$9.3m. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 28.4% to US$78.1m, with growth in all regions. As a percentage of net revenue, adjusted EBITDA improved to 23.8%, compared to 20.8% in the prior year quarter.
Adjusted EBITDA in the west region grew by 28.4% to US$8.7m, primarily driven by a higher mix of net revenue from aggregates, organic volume and price growth and the impact of acquisitions, mainly in the Houston and Midland / Odessa, Texas and British Columbia, Canada markets. In the central region, adjusted EBITDA increased by 23.2% to US$6.7m, largely attributable to price growth across all lines of business, stronger volume in aggregates and ready-mixed concrete and the favourable impact of acquisition activity. Adjusted EBITDA in the east region improved by 20.8% to US$1.6m, primarily as a result of higher volume in aggregates leading to a larger mix of net revenue derived from materials.
Gross profit increased by 25.1% to US$116m. As a percentage of net revenue, gross profit improved to 35.2%, compared to 31.6% in the prior year quarter, primarily attributable to a higher mix of net revenue from materials and products as a result of organic improvement and acquisition activity. Net revenue from materials increased by 29.6% to US$88.1m. Cement volumes and prices increased by 0.7% and 9.1%, respectively, both driven by additional market demand. Gross profit from materials grew by 34.7% to US$52.7m.
On 17 July 2015, Summit Materials completed the acquisition of the Davenports Assets, including a 1.2Mt/yr cement plant, a quarry and seven cement distribution terminals, from Lafarge for US$450m in cash and a cement distribution terminal in Bettendorf, Iowa. The Davenport Assets are being integrated with and will operate as Continental Cement Company, an existing wholly-owned subsidiary of Summit.
US: In November 2015 Fenner Drives will launch PowerTwist Wedge Belts, a long-lasting upgrade to rubber wedge belts.
As the only twist-lock belt available in a wedge profile, PowerTwist Wedge Belts are engineered to combine the performance of a rubber wedge belt with the added-value design of link belting. PowerTwist Wedge Belts will be available in SPA and SPB profiles. The link design of PowerTwist allows for simple inventory management with easy, fast installation even on captive or fixed center drives. With a high resistance to abrasion and shock loads, PowerTwist is constructed to withstand extreme temperatures and is unaffected by oil, grease, water and common industrial solvents. PowerTwist Link Belting is the proven choice for a variety of industrial power transmission applications including cement, mining, aggregate, metal manufacturing, forestry and any wedge or V belt applications.
US: Essroc, part of Italcementi, has acquired the Holcim (US) slag cement grinding plant in Camden, New Jersey, according to MarketLine. As part of the transaction, Essroc will also obtain Holcim's cement terminal in Everett, Massachusetts, US. Upon completion of the transaction, Holcim's staff in Camden and Everett will join Essroc. The transaction is expected to be completed later in 2015. The acquisition will allow Essroc to strengthen its position in the sustainable building products market.
US: Construction materials company Summit Materials has completed its previously announced acquisition of a 1.2Mt/yr capacity cement plant in Davenport, Iowa along with seven cement distribution terminals from Lafarge North America for US$450m in cash, plus an exchange of Summit's Bettendorf, Iowa cement distribution terminal.
The newly acquired cement operations will compliment Summit's existing cement plant in Hannibal, Missouri and cement distribution terminal in St Louis, Missouri. The combined business will operate as Continental Cement, an existing wholly-owned subsidiary of Summit.
Following completion of the transaction, Summit owns 2.4Mt/yr of cement production capacity across the two cement plants plus eight cement distribution terminals along the Mississippi River system ranging from Minneapolis, Minnesota to New Orleans, Louisiana.
US cement production down year-on-year in May 2015
16 July 2015US: Preliminary data from the United States Geological Survey (USGS) shows that the US produced 7.0Mt of cement in May 2015. The country imported around 0.8Mt of cement during the month, giving an apparent consumption figure of around 7.8Mt. Production and imports in May 2014 were 7.5Mt and 0.6Mt, giving apparent consumption for that month of 8.1Mt. This is 0.3Mt more than in May 2015, a fall of 3.8% year-on-year.
In the year to 30 May 2015 the US consumed a total of 31.9Mt of cement, around 0.7Mt more than in the same period of 2014, when it consumed 31.2Mt.
US cement production up year-on-year in April 2015
03 July 2015US: The United States Geological Survey (USGS) has reported that total Portland and blended cement shipments in the USA and Puerto Rico came to 7.7Mt in April 2015, a 4.1% rise compared to April 2014. In the first four months of 2015, shipments rose by 5.1% to 24.1Mt. As previously, the leading cement-producing states were Texas, California, Missouri, Florida and Alabama.
Clinker production in April 2015 was 6.1Mt, a rise of 6.4% year-on-year. Production of clinker in the four months to 30 April 2015 rose by 7.7% from the same period of 2014 at 21.6Mt.
US: CTP Sinto America, the North American business unit of Chemisch Thermische Prozesstechnik GmbH (CTP), has entered into a contract with Holcim (US) to supply emissions reductions equipment for one of the cement kilns at Holcim's Midlothian plant in Texas. In the project, exhaust gases from the main baghouse and coal mill baghouse are combined and sent to the new system and then directed to the existing wet scrubber.
The project scope includes supply and installation of a CTP Model AutoTherm6-4200 designed to handle 420,000 Nm3/hr of gas and duct modifications required to route the gas to the regenerative thermal oxidiser (RTO) and return it to the exhaust. CTP Sinto America will provide engineering, manufacturing, project management, field operations, installation and commissioning. Controls will be integrated into Holcim's existing plant-wide DCS. The system will be ready for operation in 2016. The RTO will be manufactured at subsidiary SandMold Systems in Newaygo, Michigan with some specialty parts manufactured at CTP facilities in Austria.
US: Ash Grove Cement Company has announced that its Louisville, Nebraska, plant manager John Dale has signed an agreement extending the use of an on-site building to Nebraska Wildlife Rehab Inc (NWRI). The agreement provides the rescue centre space at US$10/yr.
"We are happy to provide a home to the centre's staff and volunteers and the orphaned and injured wildlife they care for," said Dale. "The group offers an important service to the state of Nebraska."
Ash Grove first made the 4500ft2 building available to NWRI in 2010. The building provides a facility for the staff and volunteers to manage the hotline and conduct animal rehabilitation, education, training and fundraising. It typically sees more than 2000 animals each year.
"This facility has allowed NWRI to grow to serve our community and to help exponentially more people and wild animals," said NWRI executive director Laura Stastny. "We have been honored to partner with Ash Grove since 2010 and are grateful for their generosity in their donation of the use of the building for our wildlife centre."
US: According to Charlotte Business Journal, Duke Energy has proposed excavating 12 more of its 36 coal ash ponds in North and South Carolina and burying the waste in a fully-lined landfills or structural fill projects.
To date, Duke has proposed closure plans for 24 of the 36 ash ponds. In every case, it has proposed excavation and reburial. However, Garry Miller, head of closure engineering for Duke, said that might not be the case for the remaining 12 ponds. He said that the engineering work that remains to be done at those plants could yet show that a 'cap in place' process, which critics have said would be insufficient to protect against further contamination of groundwater, can effectively close them.
Miller said that none of the waste ash from Duke's 36 ash ponds would undergo beneficial reuse, the process of using the ash for commercial products such as a replacement for Portland cement in concrete and gypsum board. However, he added that Duke does send a portion of the dry ash it is currently producing at its largest plants for reuse. However, the time constraints imposed by North Carolina's Coal Ash Management Act of 2014 make it impossible for the existing ash ponds. "As we close these basins, the quantity in them is such that the market cannot handle it in a timely manner," said Miller.
Duke's current cost estimate for closing the ponds is US$3.4bn, although this is subject to revision.
LafargeHolcim merger: FTC approves final order preserving competition in 14 US markets for cement
18 June 2015US: According to Imperial Valley News, following a public comment period, the Federal Trade Commission (FTC) has approved a final order settling charges that the merger of Lafarge and Holcim would likely harm competition in 12 markets for Portland cement and two markets for slag cement.
Under the order, first announced in May 2015, the two companies are required to divest cement plants, quarries, terminals and other assets in the 12 states of Illinois, Iowa, Louisiana, Massachusetts, Michigan, Minnesota, Montana, New Jersey, New York, Ohio, Tennessee, Wisconsin, as well as several locations in Canada. The commission vote that approved the final order was 4-1, with commissioner Joshua D Wright voting no.