Displaying items by tag: Summit Materials
US: Summit Materials has appointed Joseph S Cantie as a new director, also serving on the Audit Committee. With the appointment of Cantie, Summit’s board now comprises eight members.
Cantie is the former Executive Vice President and Chief Financial Officer of ZF TRW, a division of ZF Friedrichshafen, a global automotive supplier, a position he held from May 2015 until January 2016. He served in similar roles at TRW Automotive Holdings Corp., which was acquired by ZF Industries in May 2015, since 2003. Prior to that time, Cantie held other executive positions at TRW, which he joined in 1999. From 1996 to 1999, Cantie served in several executive positions with LucasVarity, including serving as Vice President and Controller. Prior to joining LucasVarity, Cantie spent 10 years with KPMG. He is currently a director for TopBuild Corp. where he serves on the Audit, Compensation and Governance Committees, and for Delphi Automotive PLC where he serves on the Audit and Finance Committees.
Cantie is a certified public accountant and holds a Bachelor of Science degree from the State University of New York at Buffalo.
US: Summit Materials has reported increased net revenue, operating income and gross profit in the second quarter of 2015, which ended on 30 June 2015.
"During the second quarter of 2015, we produced significant growth in net revenues and margins across all of our lines of business. This strong improvement reflects the steady demand improvement in all of our regions, despite some weather-related challenges, mainly in Texas and Kansas, and our disciplined focus on price optimisation across our vertically integrated lines of businesses. We achieved this while also expanding our adjusted EBITDA margin by 300 basis points and generating incremental margins in excess of 50%. The success of our acquisition strategy was also evident in our results, with more than half of our profit growth contributed by our accretive acquisitions," said Tom Hill, president and CEO of Summit. "We believe our sustained progress is a direct result of the steps we have taken to expand our business into attractive markets and establish leadership positions throughout our diversified footprint. Our completion of the Davenport assets acquisition was an exciting milestone for our company and significantly advanced our position as a leading cement producer in the Midwest. We are now better positioned to continue enhancing our materials earnings exposure and overall profitability as we integrate these assets onto our platform. As we look to the back half of 2015, we plan to capitalise on the improving demand environment to improve our profitability while also remaining opportunistic with our capital to further expand our businesses in select target markets."
In the second quarter 2015, net revenue increased by 12.5% to US$329m. The increase in net revenue was primarily attributable to an increase in volumes across all lines of business, led by the West and Central regions. Net revenue grew organically by 3.2% to US$9.3m. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 28.4% to US$78.1m, with growth in all regions. As a percentage of net revenue, adjusted EBITDA improved to 23.8%, compared to 20.8% in the prior year quarter.
Adjusted EBITDA in the west region grew by 28.4% to US$8.7m, primarily driven by a higher mix of net revenue from aggregates, organic volume and price growth and the impact of acquisitions, mainly in the Houston and Midland / Odessa, Texas and British Columbia, Canada markets. In the central region, adjusted EBITDA increased by 23.2% to US$6.7m, largely attributable to price growth across all lines of business, stronger volume in aggregates and ready-mixed concrete and the favourable impact of acquisition activity. Adjusted EBITDA in the east region improved by 20.8% to US$1.6m, primarily as a result of higher volume in aggregates leading to a larger mix of net revenue derived from materials.
Gross profit increased by 25.1% to US$116m. As a percentage of net revenue, gross profit improved to 35.2%, compared to 31.6% in the prior year quarter, primarily attributable to a higher mix of net revenue from materials and products as a result of organic improvement and acquisition activity. Net revenue from materials increased by 29.6% to US$88.1m. Cement volumes and prices increased by 0.7% and 9.1%, respectively, both driven by additional market demand. Gross profit from materials grew by 34.7% to US$52.7m.
On 17 July 2015, Summit Materials completed the acquisition of the Davenports Assets, including a 1.2Mt/yr cement plant, a quarry and seven cement distribution terminals, from Lafarge for US$450m in cash and a cement distribution terminal in Bettendorf, Iowa. The Davenport Assets are being integrated with and will operate as Continental Cement Company, an existing wholly-owned subsidiary of Summit.
US: Construction materials company Summit Materials has completed its previously announced acquisition of a 1.2Mt/yr capacity cement plant in Davenport, Iowa along with seven cement distribution terminals from Lafarge North America for US$450m in cash, plus an exchange of Summit's Bettendorf, Iowa cement distribution terminal.
The newly acquired cement operations will compliment Summit's existing cement plant in Hannibal, Missouri and cement distribution terminal in St Louis, Missouri. The combined business will operate as Continental Cement, an existing wholly-owned subsidiary of Summit.
Following completion of the transaction, Summit owns 2.4Mt/yr of cement production capacity across the two cement plants plus eight cement distribution terminals along the Mississippi River system ranging from Minneapolis, Minnesota to New Orleans, Louisiana.
US: Lafarge and Holcim have announced further details on the package of assets that they propose to divest in the US as part of their planned merger to create LafargeHolcim. The divestments include:
- Lafarge's 1.1Mt/yr Davenport cement plant in Iowa and seven terminals along the Mississippi River. The units will be sold to Summit Materials for US$450m in cash plus Summit's Bettendorf, Iowa cement terminal;
- Holcim terminals in Michigan and Illinois;
- Holcim Skyway 600,000t/yr slag grinding station in Illinois;
- Holcim Camden 700,000t/yr slag grinding station in New Jersey, along with a terminal in Massachusetts.
The proposed divestments have been negotiated with the staff of the Federal Trade Commission and remain subject to review and approval by the commission. The divestments will be completed subject to acceptance by the commission and to the closing of the merger between Holcim and Lafarge.