Summit Materials reports positive 2017
Published by Jonathan Rowland,
Editor
World Cement,
Summit Materials has reported it shipped 2.55 million short t of cement in 2017, a 5.8% like-for-like increase on 2016. Like-for-like average pricing was also up 3.3% at US$112.42 per short t.
Sales were driven by “increased demand in our Mississippi River markets north of St. Louis,” said Tom Hill, CEO of Summit Materials.
Earnings from Summit’s cement business increased by 12.9% to US$127.5 million over the full year, as a result of the higher average prices and sales volumes, as well as improved production efficiencies and cost reductions.
The positive full-year results came despite a more challenging 4Q17, during which adverse weather saw sales volumes decline in October and November. Overall quarterly sales volumes were down 5.5%, although average selling prices were up 2.5%.
Overall earnings were up 17.4% to US$435.8 million with organic growth contributing 20% of the overall year-on-year improvement. Organic growth continues to gain importance for the company known for its acquisitiveness. Almost half of its 2018 CAPEX is expected to be directed towards developing organic growth, compared to 28% in 2017.
Full-year guidance for this year is in the range of US490 – US$510 million.
“We have strong momentum entering 2018, given opportunities for continued organic growth in our existing base of assets, together with favourable demand conditions in our private and public end-markets,” concluded Hill.
Read the article online at: https://www.worldcement.com/the-americas/06032018/summit-materials-reports-positive-2017/
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