Author
Martin Marietta anticipates further growth in 2016
Martin Marietta Materials Inc.'s shipments to the infrastructure market increased 5 percent last year. According to the company, which recently released its fourth-quarter and 2015 year-end performance report, the growth reflects state-level funding initiatives that are positively impacting key states in which it resides. Major infrastructure activity is accelerating at the state level and, when combined with the recently passed FAST Act, will likely increase the rate of infrastructure growth, the duration of projects and the mix of aggregate-intensive new construction for 2016 and beyond, the company reports. “Our outlook for 2016 reflects growing underlying demand and strong pricing across our entire geographic footprint," says Ward Nye, chairman, president and CEO of Martin Marietta. "National employment growth, a stimulus for construction activity, remained robust throughout 2015, surpassing the pre-recession peak by nearly 5 million jobs. These job gains, in addition to substantial contractor backlogs resulting from historic rainfall in 2015, should fuel growth and further recovery of the U.S. construction industry.” Positive private sector construction activity and favorable population dynamics… Keep Reading
Martin Marietta reports quarterly sales records
Martin Marietta Materials Inc., which released its fourth-quarter and 2015 year-end performance report, established quarterly company records for net sales and profitability. According to Ward Nye, chairman, president and CEO of Martin Marietta, strong pricing, disciplined execution of the company's strategic plan and steady growth in general construction activity drove the company's sales. "Notably, all segments in the aggregates business delivered increased net sales and gross profit, while expanding gross profit margin," Nye says. "We exceeded our incremental gross margin target for heritage Martin Marietta businesses, as well as on a consolidated basis." Martin Marietta's West Group led the company's gross profit margin expansion with a 630-basis-point improvement. This was largely the result of strong pricing and realized synergies from the Texas Industries acquisition, Nye says. The marks were achieved despite heighted and sustained adverse weather trends that constrained shipments and efficient production, he adds. “The National Oceanic and Atmospheric Administration has tracked precipitation levels for 121 years, and the fourth quarter was the wettest, at both the national level… Keep Reading
Vulcan sets expectations for 2016
Economists say to expect growth in construction materials demand this year. Vulcan Materials Co., one of the nation's largest aggregate producers, expects growth, as well. According to Vulcan, which recently released its fourth-quarter performance report, the company expects overall demand in Vulcan-served markets to be up about 7 percent in 2016. Additional growth in private and public construction will drive the demand, Vulcan says. Private construction activity should continue to grow in both residential and nonresidential segments, led by double-digit growth in residential, Vulcan says. The company expects public construction in its markets to continue to benefit from state-led highway spending in key states and record levels of local tax receipts. The recently enacted FAST Act is another reason for confidence at Vulcan. The company believes mid-single-digit growth is possible this year for "aggregates-intensive" end markets. "Our expectation for full-year adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $1.0 to $1.1 billion is driven by the continuing recovery in demand from the trough seen in 2012, strong growth in… Keep Reading
Vulcan reports fourth-quarter growth
Vulcan Materials Co. released its fourth-quarter results, reporting 14 percent higher revenues over the prior year's fourth quarter. According to Vulcan, gross profit and gross profit margins improved in the company's aggregates, asphalt and concrete segments. The company achieved its 10th straight quarter of year-over-year improvements in both aggregates shipments and per-ton margins. Same-store aggregates shipments rose 8 percent, and same-store freight-adjusted aggregates pricing increased 11 percent from the prior year. The company's adjusted 2015 earnings before interest, taxes, depreciation and amortization (EBITDA) were $836 million. Vulcan expects a 2016 EBITDA of between $1.0 and $1.1 billion. "Our teams across the company did a great job serving our customers and running our operations safely and efficiently," says Tom Hill, Vulcan president and CEO. "Full-year 2015 aggregates volume increased 7 percent on a same-store basis in 2015, and we expect a similar level of volume growth in 2016." According to Hill, the pricing environment remains strong for Vulcan's products. "Customers see improved backlogs, and construction materials suppliers increasingly focus on earning adequate… Keep Reading
Mine use of drones the focus of upcoming webinar
The National Stone, Sand and Gravel Association's (NSSGA) monthly AGG1 Online Webinar series continues this month with a webinar on drones. According to NSSGA, the Feb. 25 webinar will exhibit how mining companies are using drone aerial images to change and innovate how they conduct mine planning, mine operations and stockpile measurement. Sully-Miller Contracting Co.'s Jon Layne and Kespry's Adam Rice are scheduled to present the webinar, which is $49 for NSSGA members and $99 for non-members. In April, NSSGA plans to host a webinar on stormwater permit changes. The association's May webinar will focus on safety. Keep Reading
SME conference offers technical sessions, field trip
The Society for Mining, Metallurgy & Exploration Inc. (SME) plans to host its 2016 Annual Conference & Expo (ACE) Feb. 21-24 at the Phoenix Convention Center. According to SME, the conference theme is "The Future For Mining In A Data-Driven World." Technological advancements, upcoming legislation and market trends will be among the topics explored at the conference. Attendees will have the opportunity to network, meet industry leaders and get an inside look at trending industry issues, adds SME. SME’s ACE includes more than 100 technical sessions presented by mining industry leaders from around the world. Some technical sessions will focus on aggregates, the environment, and health and safety. The sessions will teach attendees how to utilize data they've obtained from their operations to achieve success. "Data can identify trends in the industry, where customers are and what is currently motivating their purchases, even where certain minerals are located," says SME. "Companies who know how to make data work for them are the ones that will be successful in the future. The… Keep Reading
NSSGA commissions Pit & Quarry contributor for market forecast
S-C Market Analytics, a construction materials forecasting company whose chief economist contributes regularly to Pit & Quarry, produced a report commissioned by the National Stone, Sand and Gravel Association (NSSGA) about the anticipated impact of the FAST Act on aggregates demand. In the report, S-C Market Analytics shows a corresponding increase in the demand for aggregates with increased federal dollars in the first few years of the new bill. The FAST Act's impact peaks in 2018, and then projected higher interest rates and inflation reduce the impact of the federal program. The FAST Act, which Congress adopted and the president approved in December 2015, injects $305 billion into the federal transportation budget from fiscal year 2016 through 2020. It is the first long-term investment in infrastructure in more than a decade, and the funds provided will allow states to purchase and use an additional 114 million metric tons of aggregates. “The FAST Act’s five years of funding certainty creates the much-needed stability to enable state governments to plan and implement… Keep Reading
Repurposing sandstone for new business
Scraps of cut sandstone had piled up on Napoleon Stone’s property for years, sitting idle with no purpose or revenue-generating possibilities. But the current owners found opportunities to repurpose the sandstone, and they’re continuously searching for other ways to better their business. “When you make a sawn step you have a particular amount of waste in a strip or a piece,” says John Carretta, co-owner of Napoleon Stone, a landscape and building stone producer based in Napoleon, Mich. “Historically, that might have gone into a pile and sat there a while.” Material Napoleon Stone can’t repurpose and sell as building-stone veneer can be crushed or screened and sold as rip rap and other bulk-stone alternatives. The range of products allows Napoleon Stone to generate revenue that previously didn’t exist in the business, Carretta says, while eliminating piles from the site that would otherwise be considered waste. These are the sorts of opportunities Carretta and his business partner, Mike Sullivan, seek. The two friends purchased Napoleon Stone about 10 years ago,… Keep Reading
Economist: Cautious optimism still rings true in 2016
Aggregate producers have been cautiously optimistic about growth these last few years, ever since the Great Recession took its toll on their businesses. Cautious optimism is still a fitting approach according to George Reddin, a managing director of FMI Capital Advisors Inc. who also serves as Pit & Quarry's economics columnist. The cyclical nature of recessions is one key reason for cautious optimism in 2016 and 2017, he says. "We haven't had a recession since the Great Recession, and they happen every seven to nine years," says Reddin, who gave a presentation at the Pit & Quarry Roundtable & Conference in Fort Lauderdale, Fla. "We're getting to that point again." Still, producers can point to a number of signs and developments and feel good about the next couple of years for their businesses, Reddin says. The recently passed FAST Act is one reason for optimism, he says, but producers shouldn't expect the five-year, $305-billion highway bill to offer a return to the industry's glory years, even though it includes a slight… Keep Reading
