The inside scoop on industry news, views, and products
February 20, 2008
Vol. 4, No. 4
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The Mine Safety and Health Administration (MSHA) published a final rule on the Feb. 8 in the Federal Register that revises existing standards for mine rescue teams for underground coal mines. This final rule implements Section 4 of the Mine Improvement and New Emergency Response (MINER) Act of 2006 to improve overall mine rescue capability, mine emergency response time and mine rescue team effectiveness. It also calls for increased quantity and quality of mine rescue team training. Among the requirements of the mine rescue teams rule are the following:
MSHA published the proposed rule for mine rescue teams on Sept. 6, 2007. The agency held four public hearings in Salt Lake City; Lexington, Ky.; Charleston, W.Va.; and Birmingham. In response to a request from the public, MSHA extended the comment period from Nov. 9-16, 2007. To view the final rule, click here for a downloadable PDF. (Source: Mine Safety and Health Administration)
The Mine Safety and Health Administration (MSHA) is revising its civil penalty assessment amounts to adjust for inflation. The Debt Collection Improvement Act of 1996 (DCIA) requires MSHA to adjust all civil penalties for inflation at least once every four years according to the formula specified in the Federal Civil Penalties Inflation Adjustment Act of 1990 (Inflation Adjustment Act). The revised penalties apply to citations and orders issued on or after the effective date of this rule. DATES: This final rule is effective on March 10, 2008. FOR FURTHER INFORMATION CONTACT: Patricia W. Silvey, Director, Office of Standards, Regulations, and Variances, MSHA, 1100 Wilson Blvd., Room 2350, Arlington, Virginia 22209-3939, silvey.patricia@dol.gov, 202-693- 9440 (phone), or 202-693-9441 (fax). Almost all biofuels used today cause more greenhouse gas emissions than conventional fuels if the full emissions costs of producing these “green” fuels are taken into account, two studies have concluded. The benefits of biofuels have come under increasing attack in recent months, as scientists took a closer look at the global environmental cost of their production. These latest studies, published in the prestigious journal Science, are likely to add to the controversy. These studies for the first time take a detailed, comprehensive look at the emissions effects of the huge amount of natural land that is being converted to cropland globally to support biofuels development. The destruction of natural ecosystems — whether rain forest in the tropics or grasslands in South America — not only releases greenhouse gases into the atmosphere when they are burned and plowed, but also deprives the planet of natural sponges to absorb carbon emissions. Cropland also absorbs far less carbon than the rain forests or even scrubland that it replaces. Together the two studies offer sweeping conclusions: It does not matter if it is rain forest or scrubland that is cleared, the greenhouse gas contribution is significant. More important, they discovered that, taken globally, the production of almost all biofuels resulted, directly or indirectly, intentionally or not, in new lands being cleared, either for food or fuel. “When you take this into account, most of the biofuel that people are using or planning to use would probably increase greenhouse gasses substantially,” said Timothy Searchinger, lead author of one of the studies and a researcher in environment and economics at Princeton University. “Previously there’s been an accounting error: land use change has been left out of prior analysis.” These plant-based fuels were originally billed as better than fossil fuels because the carbon released when they were burned was balanced by the carbon absorbed when the plants grew. But even that equation proved overly simplistic because the process of turning plants into fuels causes its own emissions — for refining and transport, for example. The clearance of grassland releases 93 times the amount of greenhouse gas that would be saved by the fuel made annually on that land, said Joseph Fargione, lead author of the second paper, and a scientist at the Nature Conservancy. “So for the next 93 years you’re making climate change worse, just at the time when we need to be bringing down carbon emissions.” The Intergovernment Panel on Climate Change has said that the world has to reverse the increase of greenhouse gas emissions by 2020 to avert disastrous environment consequences. (Source: The New York Times online edition, nytimes.com, Feb. 8, 2008. By Elizabeth Rosenthal)
Lake Mead, a key source of water for millions of people in the southwestern United States, could go dry by 2021, a new study finds. The study concludes that natural forces such as evaporation, changes wrought by global warming and the increasing demand from the booming Southwest population are creating a deficit from this part of the Colorado River system. Along with Lake Powell, which is on the border between Arizona and Utah, Lake Mead supplies roughly 8 million people in the cities of Las Vegas, Los Angeles, and San Diego, among others, with critical water supplies. The system is currently only at half capacity thanks to a recent string of dry years, researchers say. The study’s findings indicated that there is a 10 percent chance that Lake Mead could be dry by 2014 and a 50 percent chance that reservoir levels will drop too low to allow hydroelectric power generation by 2017. There is a 50 percent chance the lake will go dry by 2021, the study says. Researchers say that even if water agencies follow their current drought contingency plans, those measures might not be enough to counter natural forces, especially if the region enters a period of sustained drought or if human-induced climate changes occur as currently predicted. Several studies in recent years have predicted a prolonged period of drought in the Southwest as a result of global warming. The team’s analysis of Federal Bureau of Reclamation records of past water demand and calculations of scheduled water allocations and climate conditions indicate that the system could run dry even if mitigation measures now being proposed are implemented. The new study has been accepted for publication in the journal Water Resources Research. (Source: LiveScience, by Andrea Thompson, Staff Writer)
Leaders of the National Stone, Sand and Gravel Association (NSSGA) on Feb. 4 expressed disappointment that President Bush’s FY ‘09 budget request proposes funding highways at $39.4 billion, almost $2 billion less that the funding level of $41.2 prescribed by the surface transportation law, the Safe Accountable Flexible Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU), for FY ‘09. NSSGA Chairman of the Board Louis Griesemer, Springfield Underground, Springfield, Mo., said, “The Minnesota bridge collapse should have served as a wake-up call that we continue to ignore the condition of our nation’s transportation infrastructure at our own risk. Improving our transportation systems puts people to work and to reduce funding in a softening economy makes no sense. We should be investing more in our nation’s surface transportation infrastructure. At the very least, transportation improvements should be at the level prescribed by SAFETEA-LU in FY ‘09.” NSSGA held a fly-in to focus on highway funding. Fly-in participants urged members of Congress to fund highways at the level provided in SAFETEA-LU for FY ‘09. NSSGA members also urged Congress to address the predicted shortfall in the Highway Trust Fund (HTF) expected by the expiration of SAFETEA-LU on Sept. 30, 2009. In addition, NSSGA President Joy Wilson wrote members of the Senate Finance Committee to urge inclusion of a highway component in the economic stimulus. Wilson said NSSGA would continue to work for full funding of highways in FY 2009 in accordance with SAFETEA-LU, and to build momentum for increased investment in America’s transportation infrastructure and a new vision of transportation for the 21st century. (Source: National Stone, Sand & Gravel Association) Everything you need to know about operations, equipment, and management can be found in Aggregates Manager. To sign up for a free subscription (for aggregates industry professionals), go to www.Aggman.com/circulation/subform.htmMSHA Final Rule on Civil Penalties Published The Mine Safety and Health Administration (MSHA) published its final rule on Criteria and Procedures for Proposed Assessment of Civil Penalties in the Feb. 7, 2008, Federal Register. This final rule increases three maximum civil penalties under the Federal Mine Safety and Health Act of 1977 in accordance with the requirements of the Federal Civil Penalties Inflation Adjustment Act of 1990 (“Inflation Adjustment Act”). The final rule increases the following three penalties: (1) the maximum civil penalty from $60,000 to $70,000; (2) the maximum daily penalty from $6,500 to $7,500; and (3) the maximum smoking penalty from $275 to $375. To view the final rule, go to http://www.msha.gov/REGS/FEDREG/FINAL/2008finl/E8-2226.asp. QPA: Aggregates Sales Up 3 Percent in 2007, Asphalt Markets Remain Depressed Aggregates, asphalt, and ready-mixed concrete sales volumes all increased in the fourth quarter of 2007, compared with the same period of 2006, according to the results of the latest QPA market survey. Crushed rock volumes grew by 6 percent, sand and gravel by 2 percent, ready mixed concrete by 3 percent and asphalt by 3 percent. For the whole of 2007, the crushed rock increase of 5 percent and sand and gravel increase of 1 percent produced an overall 3-percent improvement in aggregates sales volumes. Crushed rock sales were boosted by a number of large and exceptional fill contracts which took place during the year. Ready-mixed concrete growth for the year was 2 percent, confirming the continued growth of construction activity in 2007. Asphalt volumes were flat in 2007 due to some recovery in the second half of the year – although this second half performance compared with a very poor second half of 2006. The context of asphalt sales in 2007 is that the market remains at a historic low level of 25.7 million tons. The last year when asphalt demand was lower than 25.7 million tons was 1986. Eagle Materials Third-Quarter Earnings Decline 45 Percent Eagle Materials Inc., a manufacturer of gypsum wallboard and cement, says that its third quarter earnings dropped 45 percent from last year, a 19-percent decrease in revenues as the sales prices and volumes were much lower. The Dallas, Texas-based company posted net earnings for the third quarter of $22.38 million or $0.50 per share, compared to $40.92 million or $0.83 per share in the same period of last year. On average, five analysts polled by First Call/Thomson Financial expected the company to earn $0.47 per share for the third quarter. Quarterly revenues declined 19 percent to $173.01 million from $214.18 million in the comparable period of last year. Three Wall Street analysts expected revenues of $173.55 million. Revenues from gypsum wallboard segment were $73.37 million, down 36 percent from $114.41 million, and its operating earnings declined 83 percent to $6.9 million from $41.6 million in the last year period, primarily due to lower sales prices combined with lower sales volumes, as residential activity was weak during the quarter. Revenues from concrete and aggregates declined 9 percent to $22.15 million from $24.25 million, and its operating profit was $3.1 million, down 27 percent from $4.3 million in the prior year period, primarily due to lower sales volumes in Northern California for both concrete and aggregates. However, cement revenues rose 10 percent to $83.39 million from $75.08 million, and its operating earnings was $26.60 million, up 60 percent from $16.64 million in the comparable period of last year. Paperboard revenues, including sales to Wallboard operations, rose 7 percent to $32.1 million, and its operating earnings was $5.1 million, up 2 percent from last year, reflecting a significant increase in the cost of recycled fiber and reduced sales of gypsum linerboard offset by the favorable settlement of an outstanding lawsuit. For the nine months, net earnings were $95.86 million or $2.05 per share, down from $166.10 million or $3.31 per share a year ago. Total revenues for the year-to-date decreased 17 percent to $604.71 million from $730.62 million in the corresponding period of last year.
Martin Marietta Profit Slips on Flat Sales Earnings fell for Martin Marietta Materials in the fourth quarter as sales of its construction material stagnated and costs rose. Martin Marietta said it earned $56.5 million, or $1.33 per diluted share, in the quarter. A year prior, the Raleigh company earned $62.5 million, or $1.36 per share. Revenue increased just more than 1 percent, to $536 million, from $529 million. Martin Marietta has relied on pricing growth to fuel sales increases in recent quarters. The actual volume of aggregates the company sells has slumped thanks to a slowing residential construction market. In the fourth quarter, aggregate volume was down 5 percent, the company said. It blamed the downturn on December’s poor weather in some of its strongest geographic areas, including the Carolinas, and said volume was actually up in October and November. Pricing also hurt Martin Marietta, however. The cost of its aggregates rose 5.5 percent in the quarter, down from the 8.6 percent year-on-year growth the company enjoyed in the third quarter. Martin Marietta said a heavy concentration of business in lower-price areas in the West dropped the rate of increase by 1.5 percentage points. It also cost the company more money to buy, make, and distribute its products. Gross profit, or sales minus manufacturing and transportation costs, was 24.4 percent of revenue in the quarter. That margin was 26.1 percent in the prior-year quarter, Martin Marietta said. The cost of diesel fuel and liquid asphalt cut earnings by 9 cents per share, the company said. Excluding a 1-cent loss on discontinued operations, Martin Marietta posted earnings of $1.34 in the quarter. Analysts polled by Thomson Financial, on average, had expected the company to earn $1.55 per share on revenue of $537.2 million. The company also said that while demand for aggregates remains strong on commercial and industrial projects, it doesn't expect significant growth in residential housing until late 2009 or 2010. Thus, it said, it expects 2008 earnings per share of $6.25 to $7 — well below the analysts’ consensus estimate of $7.14. (Source: Triangle Business Journal) Vulcan Materials’ Fourth-Quarter Profit Falls on Housing Slump Asphalt and concrete supplier Vulcan Materials Co. said Feb. 14 that its fourth-quarter profit tumbled 26 percent, citing the drop in residential construction activity. The news sent Vulcan shares down $1.97, or 2.8 percent, to $68.49 in early trading. Vulcan earned $84.6 million, or 82 cents per share, compared with $113.8 million, or $1.17 per share, for the same quarter in 2006. Earnings from continuing operations fell to $86.1 million, or 83 cents per share, from $115 million, or $1.19 per share, for the year-ago period. Net sales rose 5 percent to $856.9 million from $816.3 million. Analysts polled by Thomson Financial expected a profit of $1.09 per share on $910.4 million in revenue. Vulcan said the sharp drop in residential construction activity was partially offset by higher levels of highway construction and non-residential construction. The average selling price for aggregates such as crushed stone, gravel and sand rose 13 percent in 2007, despite a 9-percent decline in aggregates shipments, Vulcan said. Asphalt shipments fell 8 percent, but the effects were mostly offset by a 5 percent increase in prices, Vulcan said. Concrete shipments, which are tied more closely to residential construction than aggregates shipments, fell 24 percent, while prices increased just more than 1 percent, the company said. The recent quarter’s results also included about 28 cents per share in expenses related to the company’s acquisition on Florida Rock. For the full year 2007, Vulcan earned $450.9 million, or $4.54 per share, compared with $470.2 million, or $4.71 per share, for 2006. Net sales rose to $3.09 billion from $3.04 billion the year before. (Source: Associated Press, Feb. 14, 2008) Highways For Life Technology Partnerships Program Announces First Awards The Federal Highway Administration awarded five grants under the Highways for LIFE Technology Partnerships Program to accelerate the adoption of innovations that have the potential to reduce congestion and improve highway quality and safety. The grants will encourage the use of innovative equipment, materials, practices, or processes in the design, construction, or financing of highways. Selected from an applicant pool of 55 proposals, the grants will help the five companies refine and test technologies currently at the prototype stage in a real-world highway setting in partnership with state departments of transportation and local transportation agencies.
Votorantim Cement North America Acquires Prairie Materials Votorantim Cement North America, through its U.S. affiliate, Votorantim Cimentos North America, Inc., on Feb. 1 acquired Prairie Material Sales, Inc. and certain of its affiliates ready-mix concrete, aggregates and related cartage businesses. Prairie has been in business for more than 60 years. Headquartered in Bridgeview, Ill., Prairie is a supplier of ready-mix concrete — with 81 plants in Illinois, Michigan, Indiana, and Wisconsin — and aggregates — with 17 aggregate mining operations in Illinois and Indiana. VCNA is the North-American subsidiary of Votorantim Cimentos, an international cement manufacturer and part of the Votorantim Group of companies, one of Brazil's largest industrial conglomerates. VCNA oversees the Group's cement, ready mix and aggregate operations in North America, which include St. Marys Cement Inc. (SMC), a leading manufacturer of cement, ready-mixed concrete and aggregates in the United States and Canada located in the Great Lakes region. VCNA is also the managing partner of Suwannee American Cement and a 50-percent partner in Trinity Materials, a joint venture with Anderson Columbia Construction. New bogie, idler wheel reconditioning program
All of the existing failed rubber from the original steel hub is removed and a proprietary, long-lasting polyurethane is added. The polyurethane is site-proven to provide maximum cut and tear strength and a lower coefficient of friction, eliminating heat build-up and bond failures, according to Superior. Additionally, the proprietary polyurethane is U.V. stable and resistant to diesel fuel and other harmful solvents. The company’s Xtreme Wheels are recommended for agricultural and construction equipment employed in continuous operation handling heavy loads, long runs, or high speeds. They are also recommended for applications that require the towing of heavy implements such as pan scrapers or for equipment in operation on hard surfaces such as asphalt or concrete. New telescoping conveyor
The patent-pending track design is said to provide constant positive traction and improved long-term durability. The hydraulic shift axle are said to provide a seamless hydraulic shift from free wheel road travel to high-torque stacking. And the company’s PLC operation features simplicity and high quality desegregation piles, with four fully functional programs allowing users to choose their stockpiling preferences. Combination screen debuts
Pumps lots of water, fast
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Superior Tire & Rubber has launched what the company says is an industry-first bogie and idler wheel reconditioning program.
The program allows customers the opportunity to send in their old or damaged bogie and idler wheels and have them factory-reconditioned to run like new.
Masaba Mining Equipment has launched its new Magnum Telescoping Conveyor. The 36-inch by 150-foot unit features Masaba’s
proprietary track technology, hydraulic shift axles, and
programmable logic controller (PLC) operation. 
Multiquip says its new InstaPrime
pumps move large quantities of water quickly. Ranging from 6 to 12
inches in size, the pumps can move up to 5,000 gallons per minute
and are recommended for dewatering, sludge, sewer-bypass, and
well-point jobs.HCSS, developer of construction field management, estimating, and resource management software, was recently named No. 6 in the medium-sized companies category of the 2008 Best Companies to Work for in Texas program. The rankings were published in a special section in the February 2008 issue of Texas Monthly. HCSS also made the list in 2006.
HCSS, along with companies from across the state, participated in a two-part process to determine the winners. The first part consisted of evaluating each company's workplace policies, practices, philosophy, systems and demographics. The second part consisted of an employee survey to measure the employee experience. The combined scores determined the top companies and the final ranking.
The survey findings reported that HCSS employees were most happy with the flexibility and authority to quickly address customer needs, relationships with their supervisor, care for co-workers, flexibility and benefits.
Kenworth Truck Co.’s manufacturing facilities in Chillicothe, Ohio, and Renton, Wash., have earned the prestigious ISO 14001:2004 certification for effective environmental management systems established to help build Class 8 trucks in an environmentally sustainable manner.
Jeffrey Specialty Equipment and Rader Cos. announced they have combined their domestic sales offices in order to serve the wood, pulp, and paper and emerging biomass industries in the United States with more complete application solutions including size reduction equipment, pneumatics, material handling, screen and processing, and storage, and reclaim solutions.
Dexter + Chaney recently won a Merit for its Spectrum Construction Software online help system. The company was recognized for the product in the annual awards competition of the Puget Sound Chapter of the Society for Technical Communications (STC).
The help system in Spectrum’s Accounts Payable module won the award in the online category of the competition. Judges found that the product “consistently meets high standards and applies technical communication principles in a highly proficient manner.”
Schneider National, Inc., a premier provider of transportation, logistics and intermodal services, announced today that it is consolidating its network of primary rail providers and simplifying its container/trailer pool operations to further enhance its intermodal service. Schneider Intermodal will utilize BNSF Railway and CSX Intermodal as primary rail providers.
BNSF will serve as the primary western rail provider and CSXI will serve as Schneider’s primary eastern rail provider in the United States. Schneider will maintain secondary relationships with the other Class I railroads to reach markets not served by BNSF and CSXI. The new agreements provide Schneider customers with preferential loading, capacity and operational interfaces that will increase accessibility and efficiency of rail moves.
The former Barlow Marketing Group has renamed itself BMG, effective Feb. 11, to better reflect its group of services.
The firm says that it is “a hands-on strategic planning, sales development, channel management, research, marketing and international expansion solutions company dedicated to manufacturers and service organizations serving the construction, mining, aggregate, recycle and demolition markets.”
Accompanying its new name is a new logo along with the company’s ongoing tagline, “Your Growth Is Our Focus.” BMG’s Web address now reflects the company’s commitment to client growth. The new address is www.growwithbmg.com.
The latest people news on who’s who and who has moved where within the industry. |
William E. Barton, CFO for Granite Construction Inc., is retiring after 28 years of service to the company. LeAnne M. Stewart, joined Granite on Feb. 4, 2008 and will assume the role of CFO effective March 1, 2008. Barton will continue with the company through mid 2008 to ensure a smooth transition and to provide consulting services as needed.
Edgar J. Chavez has been named director of marketing for North America for New Holland Construction and Kobelco Construction Machinery America. Chavez will be responsible for all North American marketing strategies and activities for the New Holland Construction and Kobelco brands, reporting directly to Terry Sheehan, president of Kobelco America and vice president of New Holland Construction.
Leif Johansson, CEO of AB Volvo, has announced that Dennis R. Slagle, president and CEO of Volvo Construction Equipment North America, Inc., has been named president and CEO of Mack Trucks, Inc., succeeding Paul L. Vikner. The appointment of Slagle, who will also become a member of Volvo’s Global Executive Committee, is effective April 1, 2008.
Vikner will become vice chairman of the Mack board of directors and continue to represent Mack and its parent company, the Volvo Group, in their work with various federal government entities and industry organization affecting the Volvo Group’s North America truck operations.
Godwin Pumps appointed
Tomás Fernández as its
Latin America Regional Manager.
With more than 13 years of experience at Ingersoll Rand in Distribution Development and establishing Distributor Channels in Latin America, Fernández has responsibility for growing Godwin’s prominence in Latin America.
Dressta North America has announced the
promotion of Bob Olson to vice president, sales and
marketing. In his new role, Olson is responsible for all machine
sales, marketing and service support for Dressta products in the
U.S. and Canada.
Olson joined Dressta North America in 2006 as manager, distribution planning and development and has been instrumental in achieving the company’s distribution growth objectives.
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.Interested in being a sponsor of our newsletter? Contact your sales representative for more information. Click here for list of contacts.
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