Summit reports positive 3Q17 for its cement business
Published by Jonathan Rowland,
Summit Materials’ cement business reported a positive 3Q17. Sales volumes and prices both increased on last year, on strong demand for the building materials in the company’s core northern Mississippi markets.
“Our two cement plants located along the Mississippi River corridor are operating at capacity, given continued growth in cement demand throughout the region,” said Tom Hill, Summit’s CEO. “Looking to 2018, we anticipate additional growth in cement prices along the Mississippi River corridor.”
Summit’s cement segment net revenues were up 13.1% at US$101.3 million, following a 10% increased in sales volumes and 3.2% increase in average selling prices. This - combined with improved production efficiency and cost reductions – saw EBITDA grow by 16.4% to US$46.9 million.
Summit cold 0.85 million short t of cement in the three months to 30 September, compared to 0.76 million short t in 3Q16. Average pricing was up to US$113.15 per short tonne from US$109.35 per short tonne.
Year-to-date, the company saw improved cement sales of 1.93 million short t, compared to 1.70 million short t last year.
Summit Materials owns two cement plants through its subsidiary, Continental Cement: the Hannibal cement plant in Missouri and Davenport cement plant in Iowa, which was bought from Lafarge North America in 2015. The two plants have a combined capacity of 2.4 million short t. The company also operates a number of cement distribution terminals along the Mississippi River.
Read the article online at: https://www.worldcement.com/the-americas/31102017/summit-reports-positive-3q17-for-its-cement-business/
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