Pit & Quarry, December 2013
particularly residential construction in many of our key markets Growth in residential construction activity and its traditional follow on impact on private nonresidential construction continues to underpin our expectations for future volume growth and earnings improvement Aggregates segment gross profit was 150 million a 25 million increase from the prior year This earnings improvement was due to volume growth in virtually all of Vulcans markets and broad based pricing gains Aggregates shipments increased 9 percent compared to the prior year On a same store basis aggregates shipments increased 10 percent Many markets realized double digit volume growth in fact Strong private construction demand in Florida led to an increase in shipments of more than 35 percent versus last years third quarter Shipments in Texas also benefited from stronger demand particularly large industrial AS WE LOOK AT THE PROJECTS THAT COULD impact our aggregates volumes for the remainder of the year and into 2014 we continue to see a disproportionately greater number of large highway and industrial projects Don James Chairman CEO Vulcan Materials Co projects increasing nearly 30 percent versus the prior year Increased private construction activity also benefited aggregates shipments in other markets Arizona California Georgia and North Carolina each increased more than 14 percent Overall freight adjusted aggregates prices increased more than 2 percent compared to the prior year Vulcan Materials outlook James said As we look at the projects that could impact our aggregates volumes for the remainder of the year and into 2014 we continue to see a disproportionately greater number of large highway and industrial projects The timing of shipments to these projects remains difficult to predict New highway projects as measured by trailing 12 month contract awards increased 7 percent versus the prior years level the third consecutive quarter with an increase The large increase in TIFIA funding contained in last years highway bill should also positively impact future demand Year to date he said aggregates volumes are up more than 2 percent and pricing has increased more than 3 percent with virtually all markets realizing price growth versus the prior year Assuming normal weather patterns we expect these year over year growth trends to continue in the fourth quarter James added We remain focused on our strategic initiatives to enhance our leading aggregates reserves positions in attractive markets Year to date we have divested certain assets in lower margin lower growth markets in the Midwest and have added aggregates reserves and operations in attractive markets in Texas and Georgia Going forward we will continue to look for opportunities to further enhance our strategic coast to coast footprint Martin Marietta Materials Inc Martin Marietta Materials Inc announced double digit increases in revenues and earnings results for the third quarter 2013 Ward Nye president and CEO said Our performance was driven largely by the ongoing recovery in private sector construction activity as well as solid execution of our longterm strategic plans and diligent management of our cost structure I am especially proud of the fact that our company achieved these strong results despite the continued public sector construction headwinds Nye added The combination of a 12 percent increase in consolidated net sales over the prior year quarter and our ongoing focus on controlling costs resulted in a 13 percent increase in earnings per diluted share These results ref lect new third quarter records for both net sales and earnings from operations in the specialty products business as well as volume and pricing growth in the aggregates product line The aggregates business Martin Marietta Materials Net sales of 600 million up from 537 million in 3Q 2012 Aggregate earnings of 97 million up from 76 million in 3Q 2012 Aggregate pricing up 23 percent experienced volume and pricing increases from all reportable segments and pricing growth in all product lines he continued An 81 percent increase in aggregates product line shipments led to increased operating leverage The specialty products business benefited from strong dolomitic lime sales including the capacity expansion from the recently completed kiln in Ohio which led to a 13 percent increase in the segments net sales We are encouraged by significant improvements in our markets and believe as do most third party forecasters that significant upside potential remains in both the residential and nonresidential construction segments Nye continued Additionally our aggregates business will benefit from the current boom in shale gas production as well as planned follow on development We are confident SPECIAL REPORT 54 PIT QUARRY December 2013 www pitandquarry com
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