Pit & Quarry, June 2017
MARkeT InsIghTs Will The Trump Bump GeorGe reDDin Scott Duncan With strong economic growth prospects strong stock market valuations and the recent return of several key strategic buyers to the market we expect 2017 to continue to be a busy year for construction materials M A endure by GeorGe reDDin anD Scott Duncan T he first quarter of 2017 has been a remarkable one for the construction materials industry Economic conditions continue to improve while stock prices of publicly traded companies continue to ride a seesaw of expectations related to infrastructure spending The good news is that materials firms have largely recovered from the recession and with Figure 1 CMI Index Constituents 2016 Performance Company Gross EBITDa 2016 sToCk marGIn marGIn pErformanCE LafargeHolcim Ltd 419 191 67 Cemex s a B de C V 355 205 499 HeidelbergCement aG 612 174 172 CrH pLC 326 114 234 Vulcan materials Co 279 264 318 martin marietta materials Inc 254 267 622 Eagle materials Inc 266 312 630 Buzzi Unicem spa 377 205 356 Granite Construction Inc 120 58 282 summit materials Inc 341 198 201 Titan Cement Co 290 186 266 U s Concrete Inc 210 125 244 mean 321 192 324 median 308 194 274 Source CapitalIQ Figure 2 Six Month CMI Performance 20 15 10 5 0 5 Election Day Inauguration Day oct 16 oct 16 nov 16 nov 16 Dec 16 Dec 16 Jan 17 Jan 17 feb 17 feb 17 Health Care Bill mar 17 mar 17 apr 17 CmI s p 500 Dow Jones Industrial average Source CapitalIQ FMI 56 PIT QUARRY June 2017 pitandquarry com
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