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Summit Materials reports a 147% y/y rise in operating income in 2Q14

World Cement,

US based-Summit Materials, LLC has reported a 27% y/y rise in revenue for 2Q14, in addition to a 147% y/y increase in operating income and 70% y/y growth in adjusted EBITDA.

In 1H14, cement volumes were 3% lower than in the corresponding period in 2013. However, aggregates, ready-mixed concrete and asphalt sales volumes improved, rising by 35%, 139% and 21% y/y, respectively. In terms of pricing, cement and ready-mixed concrete were up by 11% and 2% y/y, respectively, in 1H14. Aggregates pricing fell 1% y/y and asphalt pricing was down 4% y/y during the period.

Regional markets

In the second quarter of 2014, revenue and adjusted EBITDA for the group’s East region remained in line with 2Q13. In the Central Region, revenue grew by 18% y/y and adjusted EBITDA increased by US$3.7 million. Improved aggregate pricing, as well as ready-mixed concrete, asphalt and aggregates volumes helped revenue to increase by 44% y/y in the West Region. Adjusted EBITDA was US$23.9 million higher in 2Q14 than it was in 2Q13.

Comment

“We continue to focus on growing our materials and products sales and improving margins in our paving and other services. It is encouraging seeing our aggregate backlog 6% greater than it was at this point last year and an 8% increase in our aggregate volumes from organic growth, reflecting an overall increase in market demand,” commented Tom Hill, the President and CEO of Summit Materials. In addition, this quarter we increased our presence in Texas with the acquisition of Troy Vines., Inc, an integrated aggregates and ready-mixed concrete business. We also acquired Buckhorn Materials LLC, an aggregates business serving North and South Carolina. In addition, our January acquisition of Alleyton Resources continues to provide strong results and is being seamlessly integrated with the rest of the company.”

Energy efficiency achievements

The group’s cement business, Continental Cement, achieved an EPA Energy Star® earlier this year. The scheme recognises facilities that are performing in the top 25% of their kind nationwide in terms of energy efficiency.


Adapted from press release by

Read the article online at: https://www.worldcement.com/the-americas/11082014/summit-materials-llc-releases-2q14-1h14-results-268/

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