Data Mining May 2011
Little financial news to cheer about
By George H. Reddin
The construction materials sector has not had much to cheer about over the last few years. Congress did pass a short-term extension to the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU), the expired surface transportation bill, on March 4, 2011. However, the necessary extension has not solved what the nation and the industry need in the long term. The industry is working hard to encourage Congress to pass a six-year bill with adequate funding to meet infrastructure needs. The construction aggregates industry depends heavily on highway construction, and a new six-year bill would give the industry a needed boost, as it does not appear that the residential recovery will contribute in any meaningful way until 2012 or beyond.
Oldcastle Materials, Inc. acquired an asphalt plant and sand and gravel operation in Greenwood and Black Hawk, Miss., respectively, from J. J. Ferguson Sand & Gravel, Inc.
The Rogers Group, Inc. acquired two asphalt plants from Carolina Material Sales, Inc., located in Burnsville, Minn., and Hendersonville, Tenn. In a related transaction, Rogers Group acquired paving divisions of Moore & Son Site Contractors, Inc. in Mills River, N.C., and Young & McQueen Grading Co. Inc. in Burnsville, N.C.
Holcim reported a decrease in net profit of 19.6 percent to $1.3 billion, due to weaknesses in Europe and North America’s construction sectors, with sales falling 10.7 and 6.9 percent, respectively. However, Holcim issued a positive outlook for 2011, saying that demand in mature markets will recover and growth in emerging markets will continue.
CRH plc reported a decrease in pre-tax profits of 27 percent to approximately $598 million and a decrease in like-for-like sales of 7 percent. However, the company anticipates revenue growth for 2011 based on improving trends in the second half of 2010, as well as year-to-date results in 2011.
The story on mergers and acquisitions in the construction materials sector continues in its holding pattern. Until it sees relief from some combination of residential construction, highway funding, and improvement in the economy as a whole, the market can expect a continuation of the slow, but steady, pace of strategic bolt-on acquisitions.
From our partners
MORE FROM Articles
Manufacturer news: Hlavinka Equipment opens Texas Hlavinda JCB division; Terex Washing Systems appoints new global sales director; Skelly and Loy promotes Aungst to VP of AMS; Luff Industries adds Riddell as territory manager; Caterpillar opens first Data Innovation Lab; Yokohama Tire Corp. will help build eco-friendly playground
SUBSCRIBE & FOLLOW
- Vulcan Materials to meet August deadline for restoring eastern hillside of Azusa rock quarry476 Views
- MSHA issues serious non-fatal accident alert, best practices in response to water truck accident452 Views
- MSHA Fatality Review Committee determines several fatalities are chargeable to the mining industry320 Views
- Excavator explodes into flames after engine malfunction on New York jobsite (VIDEO)280 Views
- Eric Olsen appointed future CEO of Lafarge Holcim merger254 Views