The full House of Representatives and House and Senate appropriations leadership agreed on Jan. 30 to fund highways and transit at the SAFETEA-LU authorized level for FY ‘07 in the joint resolution funding the government through the end of the fiscal year.

The move means federal highway programs will be funded at $39.1 billion, which is a $3.4 billion increase from FY 2006. House Committee on Transportation and Infrastructure (T&I) Chairman James L. Oberstar (D-Minn.) credited a large bipartisan effort in both chambers for influencing the outcome.

Oberstar and ranking committee Republican John Mica (R-Fla.) sent a similar letter to the House Appropriations committee signed by all 75 members of the T&I committee.

The full House easily passed the joint resolution, H.Res.20, on Jan. 31, by a vote of 286-140, with bipartisan support. Fifty-seven Republicans voted for it, although there was widespread grumbling among them that the process did not allow for amendments.

The Senate may take up the joint resolution later this week. It must be cleared by Feb. 15 when the current continuing resolution expires.

The amendment process in the Senate will be more problematic. Senate Democratic leadership could fill the “amendment tree” to essentially block consideration of Republican amendments. Majority Leader Harry Reid (D-Nev.) has not yet said whether he plans to take that approach.

Senate Republicans are expected to focus on boosting spending for military base closures and realignments. As for highways and transit, an informal agreement seems to have been reached between the House and Senate appropriators, providing funding at the FY ‘07 authorized level, but it would be a mistake to consider the issue settled until Senate passage of the joint resolution.

(Source: National Stone, Sand & Gravel Association eDigest and Washington Watch, Feb. 6, 2007, edition)

The Bush Administration released its $2.9 trillion fiscal year (FY) 2008 budget proposal on Feb. 5. This federal spending plan includes mixed results for the $65 billion the measure recommends for the programs administered by the U.S. Department of Transportation.

Specifically, the budget recommends record investment for a number of federal transportation programs, including the highway and transit programs. Unfortunately, the budget plan fails to adhere to the surface transportation program investments guaranteed by the Safe Accountable, Flexible and Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) of 2005.

The Administration is proposing $39.585 billion for the core federal highway program—a $500 million increase over projected FY 2007 investment—and reports Highway Trust Fund Highway Account revenues have exceeded projections by $631 million (page 216 of the budget’s Analytical Perspectives).

Unfortunately, the Administration is proposing to cancel the $631 million upward adjustment of FY 2008 highway investment these additional revenues require under SAFETEA-LU’s funding guarantees due to concerns about the trust fund’s solvency. This proposal would represent the first explicit violation of the Highway Trust Fund’s investment guarantees since they were enacted in 1998.

The measure also calls for increasing federal transit investment by $450 million to $9.4 billion. This amount, however, is $300 million below the FY 2008 funding level required by SAFETEA-LU and also would be a major break from the transportation funding guarantees. The Administration’s budget also recommends a $765 million, or 22 percent, reduction in federal airport construction investment from the current level of $3.52 billion to $2.75 billion in FY 2008.  

It is important to recognize the Administration’s budget proposal is not binding, but rather represents the first step in the annual budget process. Federal spending decisions for each fiscal year are not finalized until the enactment of the 12 individual appropriations bills.

Highway program

The Bush Administration’s FY 2008 budget proposal recommends an obligation limitation for the federal highway program of $39.585 billion, which is exactly the guaranteed funding level enacted for FY 2008 in SAFETEA-LU — the 2005 federal surface transportation program law. In addition, there is $739 million of contract authority provided under the Equity Bonus and Emergency Relief programs that is not subject to the obligation limitation. The budget also recommends $175 million be reprogrammed from old earmarks to finance the administration’s proposed new Congestion Relief initiative. Total highway funding proposed for FY 2008 is thus $40.499 billion. This is $673 million, or 1.7 percent, more than the total for FY 2007.

For the full report, including an analysis and breakdown of the budget, please click here.

(Source: American Road & Transportation Builders Association.)

Aggregates Manager’s authoritative “Operations Illustrated” series has won Jesse Neal Finalist honors in the American Business Media’s (ABM) annual Jesse H. Neal National Business Journalism Awards. The Neal Awards are business-to-business journalism’s most prestigious and most sought-after editorial honors and are often referred to as “the Pulitzer Prize of the business press.”

The “Operations Illustrated” series was entered in the “How To” category. The winning entries were from 2006 issues. Aggregates Manager editors will attend an awards luncheon on March 22 in New York City, where they will find out whether the series is the category winner.

“We are thrilled that the outstanding professionals on the Aggregates Manager staff have been honored in the b to b publishing industry’s most prestigious contest,” notes Kirk Landers, the company’s editorial director. The series is created and produced by Executive Editor Therese Dunphy, Senior Editor Tina Grady Barbaccia, and Art Director Hayley Crook.

Mike Porcaro, publisher of the magazine and president of James Informational Media, adds: “This honor caps a wonderful year in the history of Aggregates Manager. Reader acceptance of the magazine has always been phenomenal and advertiser acceptance has been growing at an exceptional rate. This award is a wonderful confirmation of the vitality and entrepreneurial zeal our editors bring to the market place every month.”

The U.S. Department of Labor’s Mine Safety and Health Administration (MSHA) on Feb. 8 provided additional information to underground coal mine operators to help them determine the quantity of breathable air necessary to sustain trapped miners. The Program Information Bulletin (PIB), titled “Options for Providing Post-Accident Breathable Air to Underground Coal Miners,” will help operators implement Section 2 of the Mine Improvement and New Emergency Response (MINER) Act of 2006. 

Section 2 of the MINER Act requires that each underground coal mine operator adopt a written emergency response plan (ERP) that provides for emergency supplies of breathable air for individuals trapped underground sufficient to maintain them for a sustained period of time. The PIB suggests various methods for determining where breathable air supplies should be located and the amount of breathable air that should be available.

Options that may satisfy the breathable air requirement include: an established borehole capable of providing fresh air to a predetermined location; a 48-hour supply of breathable air, if advance contingency arrangements have been made to reliably assure that miners who cannot be rescued within 48 hours will receive additional supplies of breathable air sufficient to sustain them until rescue; a 96-hour supply of breathable air located at a predetermined location, and other methods as long as these methods provide equivalent safety protection.

Mine operators must submit the portion of their ERPs addressing breathable air not more than 30 days after Feb. 8,the date of this PIB, and must implement it not more than 60 days after the plan is approved by MSHA. The Program Information Bulletin on breathable air is available for viewing at www.msha.gov.

(Source: Mine Safety and Health Administration)

Regulatory reviews drive Cemex extension of Rinker tender offer

Cemex Chairman Lorenzo Zambrano informed Rinker Group shareholders in a Jan. 23 letter his company is extending its offer period for their shares through March 30, a move that figures to allow U.S. and Australian regulators additional time to review a takeover Cemex proposed in late October.

The letter reiterated the original tender offer, equivalent to $65 per Rinker American depository receipt (representing five Rinker Australian Stock Exchange-traded shares). The ADR have remained in the $70-$72 range since Cemex effected the bid, and Rinker board members appear to be holding firm on their recommendation that shareholders reject the offer as too low.

Due to overlap of ready mixed and aggregate businesses in Florida and Arizona, a prospective Cemex-Rinker Materials combination invites potentially greater Federal Trade Commission scrutiny than Cemex’s most recent U.S. deal, which encompassed the Sun Belt-spanning concrete, aggregate and cement operations of RMC USA Inc. Its takeover with the remaining London-based RMC Group was consummated after about six months of review by domestic and foreign regulators.

(Source: Aggregate Research Industries and Cemex S.A.B. de C.V)

The Karson Group named one of ‘Canada’s 50 Best Managed Companies’

TORONTO—Aecon Group Inc. has announced that The Karson Group is a winner of “Canada’s 50 Best Managed Companies.” The Karson Group, acquired by Aecon earlier this month, is one of the largest aggregate, asphalt, and civil construction companies in Eastern Ontario.

Since it was founded 33 years ago, The Karson Group has had a reputation of providing quality products and services, while acquiring key resources for long-term growth. Attracting and retaining the best skilled people continues to be a key to their success.

Established in 1993, the Canada’s 50 Best Managed Companies is a national awards program, recognizing Canadian companies that have implemented world-class business practices and created value in innovative ways.

Applications are reviewed by an independent judging panel that evaluates how companies address various business challenges, including new technologies, globalization, brand management, leadership, leveraging, and developing core competencies, designing information systems, and hiring the right talent to facilitate growth.

(Source: CNW Group)

Family suing Cemex for wrongful death of man

LAS CRUCES, N.M.—The family of a Las Cruces, N.M., man has filed a wrongful death lawsuit against the owner of a cement mixer truck that tipped over, landing on the man’s vehicle and killing him.

Leopoldo Marquez died at the wheel of a Ford F-150 pickup truck on Aug. 11, 2006. A cement mixer truck owned by Cemex crushed him.

“As a proximate result of the negligence and gross negligence of one or more agents, servants or employees of Cemex, Leopoldo Marquez died a painful and needless death,” the lawsuit states.

The lawsuit was filed in 3rd Judicial District Court and seeks funeral costs, loss of wages, attorney fees, and unspecified punitive damages. Marquez’s wife and four children filed the lawsuit, which names Cemex as the defendant.

A message left for the Marquez family attorney, Kent Buckingham of Midland, Texas, was not returned. A Cemex spokesperson at the Mexican company’s U.S. headquarters in Houston declined to comment on the lawsuit.

Marquez, 56, was stopped at Sonoma Springs Road in east Las Cruces, waiting to turn left on Golf Club Road.

The driver of the cement mixer, 38-year-old Geraldo Saenz of El Paso, attempted to turn onto Golf Club Road but lost control. The back of the cement mixer landed on the Ford truck, crushing the vehicle and killing Marquez.

Saenz was not injured and was cited for careless driving. He was not named as a defendant in the lawsuit.

(Source: Las Cruces Sun-News. By Jose L. Medina, Sun-News reporter. Jose Medina can be reached at jmedina@lcsun-news.com)

Tilcon and Clarkstown to hold talks on West Nyack quarry

WEST NYACK, New York—Clarkstown officials and representatives of Tilcon New York will meet next month to talk about how the mining company can be a better neighbor.

The diplomatic approach comes after the state Department of Environmental Conservation renewed Tilcon’s quarry-mining permit for its West Nyack in September. Initially, the agency assured town residents and officials at a public hearing that it would allow them more time to comment on the permit before any action was taken.

But on Sept. 25, the DEC renewed Tilcon’s permit without any input from the town. And although the agency said it would still accept public comment on Tilcon, Town Supervisor Alexander Gromack said changes at the busy quarry would now be up to Tilcon.

“We don’t believe the residents will get any relief from the state,” Gromack said yesterday. “While the state will allow us to submit our report and concerns, we don’t believe the state will change Tilcon’s permit.

“However there is an agreement that they want to be good neighbors,” he said of Tilcon.

Gromack said the mining company was willing to recognize a report compiled by Clarkstown’s consultants. The town hired the engineering firm H2M Group of Melville, N.Y., to review Tilcon’s mining permit.

The firm was to compile a report showing whether the company had adequate plans to control dust and minimize noise and traffic. The group was also to review restrictions placed on the company and what its reclamation plans were.

A preliminary report from the consultants showed noise was the most apparent problem. Dust levels and air and water quality did not appear unusual, Gromack said.

Tilcon has told the town it was committed to finding ways to help reduce noise. They were also recommending ways to mitigate traffic in the area and said they want to save the 18th century Storms Tavern in Valley Cottage, which Tilcon purchased and planned to demolish, Gromack said.

Tilcon spokesman Geoffrey Thompson said the company was looking for ways to minimize the sound of crushing rock.

“We want to be a good neighbor,” he said, “and we will actively address the concerns the residents and town has expressed.”

(Source: The Journal News, Jan. 25, 2007. By Christina Jeng. Reach Christina Jeng at cjeng@lohud.com or 845-578-2497.)

Lafarge, Vulcan receive top honors in NSSGA National Stars of Excellence Award Winners

The National, Stone, Sand & Gravel Association (NSSGA) on Feb. 7 announced the winners of its National Stars of Excellence program for 2006.

Member operations from Lafarge and Vulcan Materials Co. received top honors. The 13 winners will be recognized on March 1 during an Awards Breakfast at NSSGA’s annual convention in San Francisco.

NSSGA’ National Stars of Excellence program began in 2001 and is presented to those operations earning two or more of any of the following awards during a five-year period: About Face Showplace; Community Relations Pinnacle Award; Environmental Eagle Gold Award; Large, Medium or Small Operation Lowest Incidence Rate Safety Award.

Each operation is awarded a number of stars corresponding to the number of awards won (two, three or four) and is identified as a Two-, Three- or Four-Star Award winner.

For a full list of winners in a downloadable PDF format, click here.

ATF issues ruling on computerized inventory records for explosives 

The U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) issued ruling 2001-1 granting approval “in specified cases” to the use of computerized records to meet the requirements of 27 CFR 555, Subpart G.

This section of the regulation permitted only records in paper form prior to this ruling.  While the new ruling allows the use of computerized records, it does so with conditions mostly designed to ensure that the record is permanent and can not be revised or changed at a later date.

For a PDF of the ruling, please click here.

(Source: National Stone, San d & Gravel Association eDigest & Washington Watch e-newsletter, Jan. 30, 2007, edition)

CRH/Oldcastle being sued U.S. $120 million over antitrust complaint

IRELAND—The Irish Times reports that CRH is being sued for more than $120 million (€92.5 million) in the United States amid claims that its affiliates used “illegal” dominant market positions in New York to acquire a competitor, Port Dock, at a price “far below fair market value”.

The case also alleges that the Dublin-based aggregates and building materials giant subsidiary Tilcon exploited the ill-health of Port Dock’s founder to secure his signature on the sale contracts and that the acquisition may not be legally binding.

The antitrust complaint is being pursued by Port Dock Holdings, which sold its aggregates distribution business to Tilcon in 2000 for $10.1 million. Port Dock Holdings retains other assets such as property and a restaurant business. Tilcon is owned by Oldcastle Materials, CRH’s major US subsidiary.

Port Dock Holdings claims that it was put in a position where it was “forced” to sell the assets at a “fraction of their true value” because Tilcon had engaged in a sustained effort, both before and after its 1996 acquisition by Oldcastle for $270 million, to push Port Dock out of business by creating “monopoly power” in aggregates sales and distribution in Long Island and the New York City metropolitan area.

CRH has rejected the allegations as “totally baseless.”

Recently filed court documents allege that Tilcon told Port Dock that if it did not accept its offer to buy the assets, that Tilcon would no longer use Port Dock as a distributor for its products. The action additionally contends that because Tilcon had bought out all other entities from which Port Dock could have sourced products, that Tilcon had “sealed Port Dock’s doom.”

It is claimed that at the time of the acquisition, Sam Albicocco, Port Dock’s founder, was in “failing health” and that Tilcon put pressure on him to agree to an ultimatum to sell his business. Albicocco has subsequently died.

A lawyer for Port Dock Holdings, John Sachs, has asserted that the sale may not be legally binding as it is alleged that Albicocco was not empowered to sell some of the firm’s assets.

Port Dock’s legal team believes a fair value for the business would have been “a minimum” of $40 million, as in years before its acquisition it was netting between $4 million and $6 million in annual profits.

If the case goes to trial and the verdict is in Port Dock’s favor, it is seeking at least $120 million, as compensation awarded in anti-trust cases in the US are automatically tripled. Punitive damages are also being sought.

A CRH spokesman said the acquisition was a “legally binding transaction that fairly valued the assets and position of Port Dock solely as a distributor of aggregates.”

The case has been previously rejected by the first district court in New York, but Port Dock Holdings refiled the action last month in an appellate court. Any further appeal to hear the case on anti-trust grounds would have to go to the U.S. Supreme Court.

(Source: Aggregate Research Industries)

Cemex plans to sell $750 million of hybrid bonds

Cemex SAB, the world’s third-largest cement maker, plans to sell $750 million of hybrid bonds as it prepares the financing for its $11.7 billion bid for Rinker Group Ltd. of Australia.

The sale was increased from $500 million, according to a person familiar with the offering who declined to be identified because the terms haven’t been set. The securities have no set maturity and will yield about 1.90 percentage points during 10-year U.S. Treasuries until Dec. 31, 2014, when Monterrey, Mexico-based Cemex may buy them back, the person said.

Hybrid bonds have characteristics of both debt and equity, allowing Cemex to raise capital in the bond markets and show a reduction of debt on their financial statements. In return, hybrids carry higher yields than traditional bonds.

“They’re looking for balance sheet improvement,’’ said Dario Pedrajo, a senior fund manager with Kapax Investment Advisers LLC in Miami. “Usually when you make a substantial acquisition you face the risk of being downgraded by the rating agencies.”

Pedrajo, who said he is considering buying the hybrids, estimates Cemex is paying about 90 basis points more in yield than if it sold regular bonds. The difference represents about an extra $4.5 million a year in interest expense. A basis point is 0.01 percentage point.

Standard & Poor’s records the securities as debt, said Jose Coballasi, an S&P analyst in Mexico City who covers Cemex. S&P rated the $750 million of perpetual securities BBB-, one level below Cemex’s main rating, in part because of the “interest deferral feature of the notes,” S&P said in a statement.

Hybrid characteristics

Hybrids typically allow issuers to defer interest payments without defaulting, and the securities may have no maturity, similar to preferred stock.

Cemex is rated BBB rating by S&P, the second lowest investment-grade ranking. S&P said it placed the company’s rating on a credit watch with “negative implications’’ in October because of its plans to finance with debt all of the Rinker transaction, which climbs to $12.8 billion when including existing Rinker debt.

If Cemex doesn’t buy the bonds back in 2014, the yield would then float at a rate of 3 percentage points more than the three- month London interbank offered rate, according to the person familiar with the sale.

Barclays Capital and JPMorgan Chase & Co. were hired to manage the sale.

Previous sale

Cemex in December sold $1.25 billion of perpetual bonds, including $350 million bonds to yield 170 basis points over Treasuries and a call date in December 2011, and $900 million of bonds to yield 220 basis points over treasuries and a call date in December 2016.

Those bond proceeds were used to replace bank loans Cemex lined up to finance the purchase of Sydney-based Rinker, said Francisco Chavez, an analyst with the Mexican brokerage unit of Banco Bilboa Vizcaya Argentaria SA. Cemex may do the same with this bond sale, he said.

“If this follows what they did in December, it would be used to substitute one of the credit lines,’’ Chavez said. “They want to maintain their investment-grade rating and make the cost of acquiring Rinker more efficient.’’

Reducing debt

The company’s net debt fell to $5.8 billion at the end of December from as high as $10.4 billion in March 2005. S&P’s Coballasi said debt fell by $1.3 billion in the fourth quarter from the third quarter in part because proceeds from the $1.25 billion in perpetual bonds were recorded as equity and used to reduce leverage.

Cemex Chief Financial Officer Rodrigo Trevino said during a conference call with analysts on Jan. 30 the perpetual bonds won’t be treated as debt and coupon payments won’t be recorded as an interest expense because the company has no obligation to purchase the securities and has the option of deferring the coupons. Trevino couldn’t be reached for comment today [Feb. 6].

Cemex on Oct. 27 offered $13 for each Rinker U.S. share in an unsolicited bid that was rejected by Rinker’s management as too low. Shares of Rinker in the U.S. have jumped to $14.58 yesterday from $10.68 on Oct. 26.

The company will wait until it receives permission to make the acquisition from Australian and U.S. authorities before deciding whether or not to increase the offer, said Hector Medina, Cemex’s vice president of planning and finance.

Rinker, which gets about 80 percent of its sales from the U.S., would complement Cemex, which is the largest cement maker in the U.S., Chavez at Banco Bilboa said.

 (Source: Bloomberg, Feb. 6, 2007. By Adriana Arai and Thomas Black. To contact the reporters on this story: Adriana Arai in Mexico City aarai1@bloomberg.net; Thomas Black in Monterrey at tblack@bloomberg.net.)

Mergers & Acquisitions

Vulcan Materials buys North Carolina, Illinois operations

Birmingham, Ala.-based Vulcan Materials Co. on Jan. 15 announced its acquisition of the Burke County Stone Quarry in North Carolina and the Avery Gravel Company Quarry in Illinois. Vulcan has not disclosed terms of the transactions.

The Burke County Quarry is near the town of Morganton in western North Carolina. The Avery facility is in Kendall County, Illinois, approximately 50 miles west of downtown Chicago. The quarries will become part of Vulcan’s Mideast and Midwest Divisions, respectively.

“These two new quarries add approximately 140 million tons of zoned and permitted reserves,” says Vulcan’s Chairman and CEO Don James in a press release from Vulcan. “The Burke County Quarry will allow us to serve our customers in western North Carolina more efficiently. The Avery Quarry expands our Midwest Division’s geographic presence in the very attractive suburban market of western Chicago.”

Rinker acquires operations in Utah and Tennessee

Rinker Materials Corp. has acquired a quarry, other aggregates assets, and four concrete plants from JR & Sons Ready Mix in the St. George area of Utah, about 120 miles northeast of Las Vegas along the I-15 freeway corridor, according to a report in the National Stone, San d & Gravel Association’s eDigest & Washington Watch e-newsletter, Jan. 30, 2007, edition.

Rinker also says it has acquired Union Concrete Company, Inc., which operates three concrete plants around Knoxville, Tenn., according to the report. Terms of the purchases were not disclosed.

Capitol Aggregates sells ready-mix division to Texas Concrete Materials

SAN ANTONIO–Capitol Aggregates, Ltd., has sold its Central Texas ready mix operations to Texas Concrete Materials, Ltd., based in Austin.

The sale, which included four sites, was completed in mid-January, according to a Feb. 5 press release from Capitol Aggregates. The parties did not disclose financial terms of the transaction.

Capitol is currently installing new aggregate production facilities at its Marble Falls quarry and Bar X plant in Austin.

Texas Concrete Materials is now the largest supplier of ready mix concrete in the Austin area. Combining its existing two plant locations with Capitol Aggregates’ four ready-mix plant locations, Texas Concrete Materials will have the ability to serve the Austin market with its fleet of more than 100 ready mix trucks, said Jack Wheeler, owner of Texas Concrete Materials.

Capitol employees within the ready mix division, including drivers, plant operators, maintenance personnel, divisional management and administrative support staff were invited to join the Texas Concrete Materials team. Capitol’s former manager of ready mix operations, Brent Cummings, will remain with Capitol to lead the company’s aggregate sales team.

Capitol will continue to supply Texas Concrete Materials with quality crushed stone, sand, and gravel to support its expanded operations in the Austin market. “I am pleased that Capitol will have the opportunity to continue working with this great group of people as they contribute to the continuing success of Texas Concrete Materials in the Austin Metro area,” Engberg said.

Texas Concrete Materials’ acquisition of the ready mix division is the second transaction between Jack Wheeler and Capitol Aggregates. In June of 2005, Wheeler and Capitol negotiated the sale of Capitol’s hot mix division. Ironhorse Asphalt Ltd., Wheeler’s asphalt materials branch, has four operational hot mix plants in Central Texas and two in the planning stages.

Capitol Aggregates, Ltd., became part of the privately held Zachry group of companies 50 years ago, and is an affiliate of Zachry Construction Corporation in San Antonio.

Texas Concrete Materials, Ltd. was created in July 2005 as the ready mix concrete division of the Wheeler Companies.

Lafarge divests cement, aggregate, and concrete activities in Central Anatolia, Turkey

Following a competitive auction process, Lafarge announced the divestment of Yibitas Lafarge Orta Anadolu Cimento (YLOAC), in which it holds a 50-percent share, to Cimpor.

Founded in 1994, YLOAC is a 50/50 joint venture between Lafarge and Yibitas Holding. It holds three cement plants and three grinding stations for a total cement grinding capacity of 3.5 million metric tons, as well as 12 concrete plants, and two aggregates quarries, mainly located in Central Anatolia, Turkey.

This transaction fully values these assets, at an enterprise value of € 535 M, which represents a multiple of around 11 times forecasted 2006 EBITDA. The net proceeds before tax amount to € 260 million for Lafarge.

The project will be submitted to the competition authorities.

Following the transaction, Lafarge will remain a significant player in the Turkish building materials sector, with a presence mainly in the Marmara region, composed of a cement plant of 1.2 million metric tons of clinker capacity, a grinding station of 250,000 tons, 10 concrete plants, and three quarries, as well as gypsum activities.

(Source: Aggregate Research Industries, Jan. 30, 2007)

Cemex reports fourth-quarter, full-year 2006 results; sales up 19 percent

MONTERREY, Mexico—CEMEX, S.A.B. de C.V. announced that consolidated net sales increased 13 percent in the fourth quarter of 2006 to U.S.$4.5 billion and were up 19 percent for the full year reaching U.S.$18.2 billion versus the comparable periods in 2005.

EBITDA grew 4 percent in the fourth quarter of 2006 to U.S.$934 million and 16 percent to U.S.$4.1 billion for the full year.

Cemex’s consolidated fourth-quarter and full-year financial and operational highlights

Sales increased in the majority of Cemex’s markets due to higher cement, ready-mix, and aggregates volumes and better supply-demand dynamics. The main drivers of demand in most markets continued to be public infrastructure and housing.

Free cash flow after maintenance capital expenditures for the quarter was U.S.$570 million, up 53 percent from U.S.$373 million in the same quarter of 2005. For the full-year 2006, free cash flow after maintenance capital expenditures was up 22 percent to U.S.$2.7 billion versus U.S.$2.2 billion in 2005.

Operating income in the fourth quarter increased 21 percent, to U.S.$611 million, from the comparable period in 2005 and increased 18 percent to U.S.$2.9 billion for the full-year 2006 versus U.S.$2.5 billion in 2005.

EBITDA (operating income plus depreciation and amortization) increased to U.S.$934 million, 4 percent more than the U.S.$901 million achieved in the fourth quarter of 2005. For the full year 2006, EBITDA grew 16 percent to U.S.$4.1 billion versus U.S.$3.6 billion in 2005.

Hector Medina, executive vice president of planning and finance, said: “2006 was an outstanding year for Cemex. We celebrated our 100-year anniversary and achieved record financial results driven by our international presence and global diversification strategy. Despite the current slowdown in the U.S. residential sector, we experienced strong double-digit sales growth during the quarter both overall and in the majority of our key markets. As we look ahead to 2007, and with the integration of RMC fully completed, we are well positioned to grow and continue to capitalize on the macroeconomic trends driving the industry.”

Consolidated corporate results

In the fourth quarter of 2006, majority net income increased 55 percent to U.S.$377 million from U.S.$244 million in the fourth quarter of 2005. For the full-year 2006, majority net income increased 13 percent, reaching U.S.$2.4 billion.

The increase in majority net income for the quarter is due primarily to lower depreciation and amortization expense and higher foreign exchange and financial-instrument gains.

Net debt at the end of the fourth quarter was U.S.$5.8 billion, representing reductions of U.S.$1.33 billion during the quarter and U.S.$2.85 billion for the full year 2006. The net-debt-to-EBITDA ratio decreased to 1.4 times from 1.8 times at the end of third quarter 2006. Interest coverage reached 8.4 times during the quarter, up from 6.8 times a year ago.

Major markets fourth-quarter highlights

Cemex’s operations in Mexico reported net sales of U.S.$911 million in the fourth quarter of 2006, up 11 percent from the same period in 2005. EBITDA increased 9 percent to U.S.$347 million, from U.S.$319 million in 2005. Cement, ready-mix, and aggregates volumes increased 6 percent, 19 percent, and 75 percent, respectively, during the quarter.

Net sales in our operations in the United States decreased 11 percent in the fourth quarter of 2006 to US$923 million from US$1.0 billion in the comparable period of 2005.

EBITDA decreased 7 percent to U.S.$250 million versus the same period in the previous year. On a like-to-like basis for the ongoing operations during the fourth quarter of 2006, cement and ready-mix volumes decreased 11 percent and 25 percent, respectively, while aggregates volumes decreased 21 percent during the fourth quarter compared with the same period in 2005.

In Spain, net sales for the quarter were U.S.$449 million, up 21 percent from the fourth quarter of 2005, while EBITDA increased 8 percent to US$116 million. Domestic cement volume increased 9 percent during the fourth quarter of 2006 versus the same quarter in 2005. Ready-mix volumes, adjusted for the integration of the Readymix Asland assets after the termination of the joint venture with Lafarge in December 2005, increased 7 percent during the quarter versus the same period of the previous year.

Cemex’s operations in the United Kingdom experienced a 12-percent increase in net sales, to $467 million, when compared with the same quarter of 2005. EBITDA increased 2 percent to U.S.$28 million in the fourth quarter from U.S.$27 million in the fourth quarter of 2005.

Other European markets

During the fourth quarter of 2006, net sales in the Rest of Europe region increased 34 percent to US$1.0 billion versus the comparable period in the previous year. EBITDA decreased 5 percent to U.S.$84 million versus US$88 million in the fourth quarter of 2005.

South/Central America and the Caribbean

Cemex’s operations in South/Central America and the Caribbean reported net sales of U.S.$440 million during the fourth quarter of 2006, representing an increase of 35 percent from the same period of 2005. EBITDA increased 51 percent for the quarter to U.S.$140 million versus U.S.$93 million in 2005.

Africa and the Middle East

Fourth-quarter net sales in Africa and the Middle East were U.S.$176 million, up 21 percent from the same quarter of 2005. EBITDA decreased 10 percent to U.S.$34 million for the quarter versus the comparable period in 2005.

Asia

Operations in Asia reported a 6 percent increase in net sales, to U.S.$83 million, versus the fourth quarter of 2005, and EBITDA was U.S.$17 million, up 22 percent from the same period in the previous year.

Eagle Materials Inc. reports record third-quarter results

Eagle Materials Inc. on Jan. 31 reported financial results for the third quarter of fiscal 2007 ended Dec. 31, 2006 and issued guidance for the fourth quarter of its fiscal year 2007.

Highlights of the third quarter results include the following:

• Highest third quarter operating earnings in company history.
• Highest third-quarter wallboard operating earnings in company history.
• Record high third-quarter sales volume in cement – 779 thousand tons.
• Highest quarterly cement average net sales price in company history — increased $11 per ton from last year’s third quarter.
• Modernization and startup of Illinois Cement complete.

For the quarter ended Dec. 31, 2006, revenues and net earnings were $214.2 million and $40.9 million, respectively. Revenues increased 1 percent over the prior year third quarter and net earnings increased 5 percent over the same period. Diluted earnings per share for the third quarter of fiscal 2007 were $0.83 compared with $0.73 in the same period a year ago, a 14-percent increase.

The company expects to report net earnings ranging from $0.55 to $0.65 per diluted share for the fourth quarter of fiscal 2007 ending March 31.

Eagle says it remains well positioned to adapt to changing industry conditions.

While total U.S. construction spending remains strong, the severe slowdown in residential construction continues to negatively impact sales prices and volumes in the wallboard industry, Eagle says.

For calendar 2007, Eagle expects wallboard industry capacity utilization to continue to decline and average utilization to range between 80 percent and 85 percent.

National demand for cement remains at a record high level with imports of approximately 30 percent required to meet U.S. construction industry demand, Eagle says in its financial statement.

Demand in all four of Eagle Materials’ cement markets remains at high levels. High cost imports and high levels of U.S. cement demand continue to put upward pressure on cement pricing. The company’s third-quarter pricing was the highest in Eagle’s history. While pricing remains strong, poor weather in certain of our markets has delayed previously announced cement price increases.

Vulcan quarterly profits rise with record sales and earnings

Birmingham, Ala.-based-Vulcan Materials Co. on Jan. 29 announced record fourth-quarter and full year sales and earnings. Earnings from continuing operations were $115 million or $1.19 per diluted share in the fourth quarter as compared with $92 million or $0.89 per diluted share in the prior year.

Net sales increased 9 percent from the prior year’s fourth quarter. Full-year net sales increased 16 percent to $3 billion. Earnings from continuing operations were $477 million or $4.79 per diluted share, a 45 percent increase per diluted share from the prior year.

Vulcan Chairman and CEO Don James, Vulcan’s chairman and CEO, said in a written statement from Vulcan that the company’s coast-to-coast footprint serves many of the fastest-growing U.S. markets and provided regional economic diversification in 2006.

He also said that the increasing demand for aggregates in a broad range of public infrastructure and nonresidential construction helped offset the correction that has occurred in residential construction.

“Our consistent earnings growth is a reflection of both our broad geographic and end-use markets and a pricing environment for aggregates that recognizes the high cost of reserves replacement and product distribution in high growth metropolitan markets,” James said in the statement.

Fourth quarter aggregates pricing increased 16.5 percent from the prior year’s level. Aggregates shipments were 6 percent lower than the prior year’s record fourth quarter. The average unit cost for diesel fuel in the quarter was favorable to the prior year and somewhat offset higher costs for parts, supplies, electricity and the effects of lower production volumes.

Sales and earnings for asphalt increased from the prior year’s fourth quarter as improved prices more than offset higher costs for liquid asphalt and aggregates and the effects of lower volumes. Concrete earnings were slightly lower than in the prior year as the effects of lower volumes and higher costs for cement and aggregates offset improved selling prices, Vulcan noted in its financial statement.

Other income decreased approximately $11 million from the prior year’s fourth quarter due principally to a $1 million increase in the carrying value of the ECU earn-out as compared with an $11 million increase in the fourth quarter of 2005.

For the full year, improved pricing for all key products led to a 16 percent increase in net sales and drove earnings per share from continuing operations up 45 percent to a record $4.79 per diluted share. Aggregates pricing improved 14.7 percent and more than offset the effects of a slight decline in aggregates shipments and higher production costs related to diesel fuel, parts, supplies and electricity. Asphalt and concrete earnings also increased significantly as pricing improvements exceeded increases in raw material costs.

(Source: Business Wire)

St. Lawrence Cement expects strong 2007 despite softening housing market.

MONTREAL–St. Lawrence Cement Group has come off its most profitable year anticipating strong results in 2007 despite declining housing market.

Non-residential and infrastructure construction that uses a lot of cement is expected to gain momentum despite declining residential housing stocks which should remain “robust by historical standards.”

The Canadian subsidiary of Swiss-based Holcim Ltd. said its 2006 operating profit was up 21.5 percent from the prior year’s $155.5 million.

Net earnings increased to $83.2 million or $1.98 per share from $20.6 million or 49 cents per share.

Based on the performance, the quarterly dividend was increased by a penny to 15 cents per share as of May.

The company paid dividends of $23.8 million in each of the last two years.

“Our operations are stronger today than they were a year ago,” Arto told analysts.

“This is true of our cement plants, where we continue to invest in actions to increase reliability, efficiency and quality consistency.”

Full-year sales increased five percent to $1.38 billion from $1.32 billion, as “selling prices for construction materials were higher in all markets in 2006, offsetting lower sales volumes, while construction services revenues increased.”

Fourth-quarter sales were up 4.9 percent to $386 million, compared with $367.8 million in the fourth quarter of 2005.

However, fourth-quarter operating profit was down 10.9 percent to $40.9 million, with net income declining to $15.2 million or 36 cents per share from $17.2 million or 41 cents per share amid higher costs — notably energy costs – and a $1.9-million hit from the strong Canadian dollar.

The company plans to complete several capital projects this year, the largest being construction in the second quarter of a vertical rolling mill in Mississauga, Ont., Canada, that will add 500,000 tons of grinding capacity. It will also help to reduce St. Lawrence’s greenhouse gas emissions.

St. Lawrence expects to gain profits by replacing some offshore concrete imports to the U.S. with Canadian product.

“At current world cement prices, we achieve a higher margin on every ton of Canadian product that displaces imported cement required to serve our U.S. customers,” Arto said.

The move comes as analysts expect the world’s cement capacity utilization to decline during the next two years to 2002-03 levels.

“We expect global cement capacity utilization outside China to decline by one percentage point in 2007 to 89 percent, but then to fall by five percentage points to 84 percent in 2008,” Mike Betts of JP Morgan in London wrote in a report.

The fourth quarter included a $13.8-million award by the Quebec Court of Appeal to property owners in Beauport, Que., over emissions from a cement plant shut down in 1997. The company is seeking permission to appeal to the Supreme Court of Canada.

St. Lawrence Cement also took a hit from the Ottawa light rail transit project, cancelled in December by the new city government after the company, as a subcontractor, incurred engineering and design expenses.

The company is seeking compensation for $2 million to $3 million in 2006 expenses, along with costs for 2007.

The quarterly result also reflected a $7.6-million reduction of future income tax expense, thanks to the lower federal tax rate.

The weaker quarter reflected a continuing trend of softening market demand, especially in Canada, Arto said.

Meanwhile, “cement price increases have been announced in all markets to offset rising input costs related to labor and energy.”

St. Lawrence Cement closed up 55 cents to $29.99 Friday on the Toronto Stock Exchange.

(Source: Canadian Press, Feb. 2, 2007)

Florida Rock Industries, Inc.’s board approves regular quarterly dividend

JACKSONVILLE, Fla.—Florida Rock Industries, Inc. on Feb. 7 announced that its board of directors has approved the regular quarterly dividend of $.15 per share. The dividend, payable to stockholders of record on Friday, March 16, 2007, will be paid on Tuesday, April 3, 2007.

Florida Rock Industries, Inc. is a producer of construction aggregates, a provider of ready-mixed concrete and concrete products in the Southeastern and Mid-Atlantic States, and a supplier of cement in Florida and Georgia.

(Source: Business Wire)

Saint-Gobain CEO rules out merger with Lafarge

Jean-Louis Beffa, chief executive of Saint-Gobain reiterated that the group had no intention of merging with Lafarge, French daily Le Figaro reported.

Saint-Gobain reported a 29.5-percent growth in its full year net profit to 1.64 billion euro and said it had reduced its debt, adding fuel to rumors that the group will use its renewed financial strength for potential acquisitions in France or the UK, Le Figaro said.

But Beffa brushed off these rumors, commenting “I’ll say it again, we have no plans to merge with Lafarge.”

Rock Law

Regulatory Oversight

When it comes to inspections, the Federal Railroad Administration may also have responsibility for health and safety at some sites.

by Peter Gould

Most of us are familiar with both the Occupational Safety and Health Act of 1970 (OSH Act), which gives the Secretary of Labor authority to regulate all working conditions of employees engaged in business affecting commerce, and the Mine Safety and Health Act of 1977 (Mine Act), which gives the Secretary of Labor authority to regulate working conditions at mines.

Many of us also know that in 1979, the Occupational Safety and Health Administration (OSHA) and the Mine Safety and Health Administration (MSHA) entered into an interagency agreement to clarify the boundaries of the agencies’ respective jurisdictions.

The agreement was an attempt to simplify questions regarding the two agencies’ authority and to provide for coordination between them “in all areas of mutual interest.”

Under the agreement, if a facility supports mining activities to any extent — with the notable exceptions of concrete batch (ready-mix) plants and asphalt batch (hot-mix) plants whether or not located on mine property — MSHA may choose to assert its jurisdiction. The agreement further states that all doubts as to which agency has authority are to be resolved in favor of MSHA.

It is not as widely known, however, that prior to the creation of OSHA and MSHA, Congress passed the Department of Transportation Act of 1966 (Transportation Act), charging the Secretary of Transportation with devising regulations and issuing orders “for every area of railroad safety.…” In doing so, Congress granted the U.S. Department of Transportation’s Federal Railroad Administration (FRA) broad authority to regulate transportation, including both employee and passenger safety, on all forms of non-highway ground transportation that run on rails or electromagnetic guideways.

In practice, FRA’s safety jurisdiction is generally limited to railroads operating on the general railroad system, including “commuter or other short-haul railroad passenger service in a metropolitan or suburban area.” Thus, insular railroads solely confined to the boundaries of industrial plants or mines are not regulated by FRA, while railroads operating on the general railroad system remain subject to FRA’s regulations, even if they enter and operate for a limited duration within the confines of an industrial plant or mine.

With passage of the Transportation Act, Congress also granted the Secretary of Transportation “exclusive authority” to enforce safety standards, although FRA has delegated some of that authority to OSHA for safety pertaining to “railroad yards, shops, and associated offices…with respect to conditions not rooted in nor so closely related to railroad operations.” Further, similar to OSHA and MSHA, FRA promotes and regulates rail industry safety throughout the United States, through its Office of Safety. According to FRA’s Web site, the Office of Safety employs more than 415 federal safety inspectors, who operate out of eight regional offices nationally.

Although many aggregate mines and related non-mining operations entail short rail lines that exist entirely within the mine site, which may in fact be insular and not subject to FRA regulation, other mine sites or plants may abut or incorporate large switchyards that are deeply interconnected with the general railroad system and may thus be properly regulated by FRA. In other words, under certain, limited circumstances, a mine’s railroad operations, which MSHA or OSHA may currently be inspecting, might instead be subject to FRA’s authority.

The implications of FRA asserting jurisdiction over a particular rail-related function are manifold, however, and may not necessarily be preferable to MSHA or OSHA oversight. For example, different training requirements and safety standards exist among the several agencies and compliance with a new agency’s or even multiple agencies’ health and safety regulations may prove difficult and require an undesirable allocation of a company’s resources. Further, multiple agencies’ inspections place additional burdens on an operator. Factors that may weigh in favor of FRA jurisdiction are: (1) whether a particular non-insular line or switchyard services cargo for non-mining activities and for businesses other than your mine and (2) whether a non-mining business entity owns the track and operates it as a common carrier.

Conversely, if you believe that FRA is now improperly exercising jurisdiction over internal or insular rail lines at your mine, and you would prefer a different agency’s oversight, you may wish to reach out to MSHA or OSHA to request one of them to assert jurisdiction in FRA’s place. Keep in mind, however, that the creation of FRA reflects Congress’s belief that the Department of Transportation, rather than the Department of Labor, is the best position to oversee the safety of railroad employees. While the chances that your paths will cross with the FRA’s are relatively remote, being aware of the various health and safety agencies’ roles will serve you and your mines well.

Peter S. Gould is an associate at Patton Boggs LLP. He advises clients on administrative law matters and complex litigation, with a focus on environmental, heath, safety, and land use. Gould may be reached via phone at 303-894-6176 or via e-mail at pgould@pattonboggs.com.

New single-idler scale

Thayer Scale says its Quarry King conveyor belt scale has been specifically designed for outdoor conveyor weighing of dusty fines and stone-like aggregate materials. The scale features Thayer’s proven “Rocking Flexure” fulcrums and a completely new spill-proof/jam-proof “pipestem” single-idler suspension system, which incorporates built-in storage for its calibration weight. No test chains are required. Engineered to work where ongoing dust buildup and spilled aggregates foul conventional suspension designs, Quarry King applications include troughed belt conveyors 18 to 48 inches wide operating at speeds up to 600 fpm and on inclines up to 18 degrees.

New mid-size excavators

Volvo Construction Equipment has started rolling out its C-series excavators with the introduction of the 117-horsepower, 38,000-pound ED160C and the 147-horsepower, 47,000-pound EC210C. The new models have new Tier 3 compliant engines that feature Volvo’s proprietary advanced combustion design, which is said to offer high torque at low revs for ultra-efficient fuel usage. Also new: a beefed up undercarriage and superstructure, intelligent hydraulics, simplified service and monitoring, and still more luxuries in the cabs, including an electronic climate control system with 14 vents.

More power where it’s needed

LBX Co. says its new Link-Belt X2 excavator series comes to market with Tier 3 compliant engines that develop more power at lower rpms and sophisticated new hydraulic systems that have more hydraulic horsepower than previous models — and can focus that power where it’s needed most. The improved hydraulics are the product of larger, more efficient pumps, larger cylinders, and improved hydraulic circuitry. Cycle times are also enhanced with two-speed boom lifting and arm open/close functions, an arm flow assist that improves arm-in speed, and a bucket curl assist that improves curl speed under load. Four X2 models have been introduced, ranging from the 37,700-pound, 120 horsepower 160 to the 65,700-pound, 207-horsepower 290.

For more new products for the industry, check out the RollOuts section
in each month’s print edition of Aggregates Manager.

Advanced Weighing Systems has launched a new Web site. This site now includes the company’s entire product line with pictures and descriptions for each product, along with printable brochures.

The company also has included frequently asked questions, customer testimonials, and profiles of completed projects on its site.

Additionally, the site also now has a Return on Investment section, which explains how installation of the company’s Interact software, system integration, remote printers, or an unattended weighing system can save time and money by improving the efficiency of weighing and administrative operations, according to Advanced Weighing Systems.

For more information, visit the company’s Web site at www.awsys.com.

Caterpillar Inc. hosted President George W. Bush on Jan. 30, 200, at the company’s manufacturing facility in East Peoria, Ill., where the President commended Caterpillar for successfully demonstrating that U.S. companies can successfully compete on the world stage.

During his visit, the President highlighted free trade agreements put in place during his administration, which have benefited companies such as Cat. The machines and products made in East Peoria and at Caterpillar facilities across the U.S. are shipped throughout the world. Caterpillar exported more than $10 billion in products from the U.S. in 2006, a record for the company. Bush also recognized worker training programs, safe workplaces, and competitive health care benefits that make up the culture of excellence and accomplishment at Caterpillar.

Bush talked about how communities such as Peoria contribute to the strength of the American economy. The President said he was impressed with the quality of Cat machines that are in demand all over the globe but even more impressed with the American workers who build them. He will again spotlight these issues tomorrow when he delivers a state of the economy speech.

DavyMarkham has introduced a new dedicated Reconditioning Service, at its Darnall Works. It includes a fast-track capacity able to respond within 24 hours to emergency breakdowns and factory shutdowns, working round-the-clock to inspect, repair and test mechanical equipment.

Born out of the company’s long history of manufacturing steel plant, heavy mining and tunnelling machinery, and capital equipment, the service is able to undertake the reconditioning of roll chocks, mill spindles and couplings, AGC capsules, plate levelers, rolling mill housings, heavy presses, hydro turbines, rock crushing, and tunnelling machines, complete gearboxes and other complex equipment.

Further details of the new reconditioning service may be obtained from DavyMarkham at Prince of Wales Road, Sheffield S9 4EX, via telephone at +0114 244 9971, or via email at sales@davymarkham.com

IronPlanet (www.ironplanet.com), an online auction house for used construction equipment and trucks based in Pleasanton, Calif., finished the fiscal year by passing $600 million in recorded public transactions since its first auction in April 2000.  

Last year, IronPlanet held 27 online auctions that resulted in more than $163.5 million in gross sales, a growth of more than 30 percent over the previous year. The largest auction of 2006 was held December 14, accounting for nearly $11.4 million in equipment and truck sales.  

IronPlanet added more than 70,000 registered bidders in 2006, and increased the number of total auction bidders by more than 40 percent.  

For more information on IronPlanet online auctions, please visit www.ironplanet.com.

Abresist Corp., specializing in wear resistant products, is celebrating its 30th year in business in 2007/. The company, located in Urbana, Ind., 40 miles west of Fort Wayne, manufactures and installs a wide range of mineral and ceramic-based, abrasion-resistant protective linings for industrial material handling equipment.

To celebrate its 30th anniversary, the company will host an open house to be held at the Urbana facility on May 20.

Founded on May 6, 1977, Abresist Corp. was established to serve the North American market as a joint venture subsidiary of Kalenborn Kalprotect, in Vettelschoss, Germany and M.H. Detrick Co. in Chicago. Since 1983 Abresist has been wholly owned by Kalenborn Kalprotect. Abresist currently employs 43 people and has sales offices throughout the U.S. and Canada. In 2002, Abresist Corporation acquired Canada Kalprotect in Kirkland, Quebec.

To celebrate its 30th Anniversary, Joe Accetta, president of Abresist Corporation, has announced an open house to be held at the Urbana facility on May 20.

For more information contact Abresist Corp., P.O. Box 38, 5541 North State Road 13, Urbana, Ind. 46990. Telephone: 800-348-0717. Fax: 888-348-0717. Web site: www.abresist.com. E-mail: info@abresist.com.

Portland, Ore.-based ESCO Corp., a manufacture of industrial wear parts, on Feb. 6 launched ESCOSUPPLY – a retail operation that will provide mining and construction customers access to an array of superior wear parts and services.  

ESCOSUPPLY retail resources will be at the following North American locations:

ESCOSUPPLY Fort McMurray represents a joint venture between ESCO and Canadian-owned Equipment Sales and Service (ESS). The ESCOSUPPLY stores in Arizona and New Mexico were formerly known as Heflin Steel, and the other ESCOSUPPLY locations were previously known as High Desert Supply.

Sturtevant Inc. in Hanover, Mass., entered into a representative agreement with Rendertech Limited in Mornington, VIC, Australia. The agreement will increase Sturtevant’s coverage of the company’s manufactured custom size-reduction and air classification equipment for material-processing applications for the countries of Australia and New Zealand.

Sandvik, which manufacturers several brands such as Tamrock, Toro, EJC, Voest-Alpine Bergtechnik, Driltech, Mission, BPI, Rammer, and Roxon, announced plans to only do business under the name Sandvik.

Lars Josefsson, president of Sandvik Mining and Construction, says in a written statement, “I believe that doing business under one brand will clarify Sandvik’s total offering and make it even easier for our customers to do business with us. This also is a natural consequence following the reorganization of our company last year. Our customers will have to call only one number for sales, support and servicing on all Sandvik equipment, irrespective of what kind of equipment it is, just to mention some benefits.”

For more information, go to www.sandvik.com.

The Association of Equipment Manufacturers (AEM) recently elected five companies to membership in the international trade group. 

The new AEM companies are the following:

• Curtis Research Associates LLC (Pewaukee, Wis.), provider of market research and business development consulting services.
• Foton Lovol International Heavy Industry Co. Ltd. (Weifang, Shandong, China), manufacturer of wheel loaders, excavators, backhoes, rollers, tractors, and implements.
• Lift Systems Inc. (Moline, Ill.), manufacturer of telescopic gantries, mobile alternative lifting equipment and hydraulic platform trailers.
• Noram (Palatine, Ill.), manufacturer of compact motor graders.
• Xuzhou Construction Machinery Group (Jiangsu, China), manufacturer of compactors, wheel loaders and cranes.
   

Teresa Webb

Safety Vision, a provider of mobile digital video solutions, has hired Teresa Webb as marketing director. In her new position, Webb will oversee marketing, advertising and branding initiatives for Safety Vision products worldwide.

Prior to joining the Safety Vision team, Webb managed the branding and marketing communications for Mitsubishi Caterpillar Forklift America Inc. In that capacity, she was responsible for national advertising campaigns, public relations and promotional programs. A graduate of the University of Texas, Webb brings over 16 years of experience to Safety Vision.

Lisa Kelley McCluskey, a communications manager with the Washington, D.C.-headquartered American Road & Transportation Builders Association (ARTBA), has been elected president of Washington Women in Public Relations (WWPR).

She has been on the WWPR board of directors for six years and previously served as the membership director and “Woman of the Year” event director. This past year she was WWPR vice president.

Deputy Secretary Maria Cino has announced she will be leaving the Department of Transportation (DOT) after two years on March 2 to take charge of the 2008 Republican National Convention, according to a report from the National Stone, Sand & Gravel Association.

Cino praised the dedication, resourcefulness and talent of DOT employees.  She admitted she came to the Department of Transportation with very little experience in transportation, but said that the job had been one of the most rewarding of her career, according to the report.

No replacement has been named.

Granite Construction Inc., based in Watsonville, Calif., announced the promotion of Jigisha Desai to vice president, treasurer, assistant financial officer and assistant secretary, effective Jan. 16.

During her 14-year career in financial management with Granite, Desai has served as treasury manager and assistant treasurer. In her current role, she will lead a team of 21 and manage the financial position of the company, including banking, surety and risk management. Desai has an MBA degree in corporate finance from Golden Gate University and a Bachelor of Science degree in accounting from the University of Houston. She has also earned the Certified Treasury Professional (CTP) designation. Desai will replace Roxane Allbritton who will retire June 1.

Ireland-based CRH plc announces the planned retirement of Declan Doyle, managing director CRH Europe Materials, on June 30 and of Tony O’Loghlen, COO of CRH Europe Materials, who retired on Jan. 31. Declan will step down from the CRH Board on his retirement.

Albert Manifold is appointed managing director designate CRH Europe Materials with immediate effect, and will succeed Declan on his retirement at the end of June. Albert joined CRH in 1998 as Finance Director Europe Materials, and has subsequently held various senior management positions within the division. He was appointed to his current role as CRH group development director in 2005.

Henry Morris was appointed to succeed O’Loghlen as COO CRH Europe Materials, effective Feb. 1. Henry initially joined CRH in 1975, and held a number of technical, commercial and management positions before leaving the Group in 1993. He rejoined CRH Europe Materials in 2001 in his current senior role as regional director for Switzerland, Finland, and the Baltic region.

John Pallasch has been appointed a deputy assistant secretary of Labor for the U.S. Mine Safety and Health Administration. Pallasch, who had been a special assistant in MSHA’s administration unit, joins Robert Friend as one of the two deputies who report to the recently appointed Assistant Secretary Richard E. Stickler.

Ken Hurst

Holland, Mich.-based The Holland Group, Inc. has announced that Ken Hurst has accepted the position of vice president of operations for Holland USA. Hurst will direct and develop Holland’s USA operations teams to improve utilization of assets and further Holland’s commitment to lean manufacturing initiatives.

Hurst has more than 21 years combined experience in operations management and lean manufacturing. Most recently he was the vice president of operations (USA and Mexico) for Benteler Automotive Corp.

Previously, Hurst held other senior level operations positions with Benteler and GKN Automotive. He has also held various engineering and management positions with other automotive and manufacturing organizations. Hurst holds a BA in Mechanical Engineering from Virginia Military Institute. He and his wife reside in the Grand Rapids, Mich., area with their two children.

Richard Blake, vice president and general manager, Metso Minerals Industries, Inc., Trappe, Pa., has been named the 2007 recipient of the National Stone, Sand & Gravel Association’s Mark S. Walsh Annual Leadership Award.

The award was bestowed for his dedication to the long-term improvement of the aggregates industry and for his enthusiastic support of NSSGA’s Young Leaders Council (YLC).

The YLC provides a forum for future stone, sand and gravel industry leaders 40 years of age and younger to meet others and develop leadership and management skills which will help them and their companies become more successful in the aggregates industry. The award will be presented during the 2007 Annual Young Leaders Council meeting being held in Orlando, Fla., April 20-22.

The annual YLC award is named for the late Mark S. Walsh, a comptroller for producer member Rein, Shultz and Dahl of Illinois and an active member of the YLC Steering Committee. He was an energetic and enthusiastic supporter of the mission, purpose and activities of the YLC. In the two years that Walsh served on the steering committee he offered sound advice and unique insights on the focus and purpose of what the YLC should be for new and young executives in the aggregates industry, like himself.  He passed away of leukemia at the age of 38 in 1999.

In memory of Walsh’s leadership and commitment to the YLC, the YLC initiated the Mark S. Walsh Annual Leadership Award to be given to the one active individual on the YLC that, according to the award, “Exemplifies the leadership traits of professionalism, enthusiasm and commitment and whose efforts in improving and developing the image and programs of the YLC are in keeping with the example set forth by the honoree of this award.”

Randy Covey

Safety Vision, a provider of mobile digital video solutions, announced the addition of Randy Covey as the lead business development manager for wireless network solutions.

In this new role, Covey will primarily focus on assisting account executives win proposals for wireless network solutions in the mass transit, law enforcement and pupil transportation sectors. He will also provide technical training on wireless networks and security applications.

Covey brings 18 years of experience in project management, wireless network solution implementation, and technology based sales to Safety Vision. Prior to joining Safety Vision, Covey delivered security solutions to the global marketplace and managed channel sales into large-scale accounts for companies such as IBM, Siemens. and Verizon.

Bill Criss

Morris, Minn.-based Superior Industries has appointed Bill Criss as its new territory manager for conveyor component products in the Southwest region of the United States. Bill has 15 years of experience in the material handling industry as a territory manager for Good Year Tire and Rubber and in distribution sales of industrial rubber products. 

Headquartered near Reno, Nev., Bill will be working with components distributors in the states of Arizona, California, Idaho, Nevada, and Utah. His expertise will be particularly valuable as the demand for quality conveyor components in the Southwest region continues to grow.

Superior Industries offers a comprehensive line of conveyor systems, equipment and components for sand, gravel, aggregate, mining, concrete, asphalt, recycling, civil, and marine engineering industries, coal, grain, and other processing industries.

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Compiled by Tina Grady Barbaccia, Aggregates Manager Senior Editor.
To contact Tina about the newsletter content, send e-mail to e-news@aggman.com or call (630) 364-2306.

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