Tuesday, August 22, 2006

Highway deaths increase

Here's another good reason to build new roads. More than 43,400 people were killed on America's highways last year, up 1.4 percent from 42,836 in 2004, the National Highway Traffic Safety Administration announced today. It was the highest number in a single year since 1990, when 44,599 people were killed. As I have said before, better roads are a critical public safety issue. Your comment?

Monday, August 21, 2006

I'm baaaaaaaaack

Yeah, you're right. where have I been? Okay, I'm back. Sorry for the week's delay. Now for the news. Michael E. Neason, safety manager for the Mideast Region of Hanson Aggregates, Louisville, Ky., has been named the National Stone, Sand and Gravel Association (NSSGA) James M. Christie Safety and Health Professional.  The coveted award will be presented at luncheon on Sept. 13 in conjunction with NSSGA's Environment, Safety and Health Regulatory Summit in Denver, Co.  Join me in congratulating Michael. Your comment?

Monday, August 07, 2006

On Vacation

Even a devoted blogger such as myself needs a break every now and then. I'll be on vacation all this week. The Pit & Quarry Editor's Blog returns next week.

Friday, August 04, 2006

Rinker + Lafarge = BIG

Here's an interesting tidbit from an Australian newspaper: Building supplier Rinker also jumped because of speculation about a potential takeover by French construction company Lafarge. Rinker, which had slumped from a 12-month high of $21.44 in April on worries about the strength of the U.S. housing market, put on 34¢ yesterday to $12.92. "Rinker has in the past been an acquirer, but at these levels Lafarge may be a likely bidder for Rinker," Mr Conlan said. "The Rinker share price has been sold off over 30 per cent in the last few weeks, but it has been way overdone and bargain hunters are coming into the market in anticipation of a possible takeover." Hmmmm, how's that for something from the rumor mill? Your comment?

Thursday, August 03, 2006

Vulcan rises higher

Score another strong quarter for Vulcan. Vulcan Materials Co. reported that its second-quarter net income rose as it increased prices for its product lines. The company reported net profit of $147.7 million, or $1.45 per share, compared with $121.5 million, or $1.17 per share, a year earlier. Second-quarter net sales were $808 million, an increase of about 15 percent from the prior year's level, it said, adding that while energy costs increased, pricing also improved.

"Overall, we expect the broad strength in public infrastructure and private nonresidential construction in our markets to more than offset weaker residential construction activity in certain key markets," Chief Executive Don James said. "Aggregates pricing improved 13 percent, driving aggregates earnings and margins higher despite increased energy costs. Our asphalt and concrete product lines also realized considerable growth in earnings and margins as price improvements more than offset higher costs for key raw materials. Following a very strong increase in the first quarter, second quarter shipments of aggregates were somewhat lower than a year ago. Year-to-date, aggregates shipments have met our expectations of 4 percent growth above our all-time record first-half shipments in 2005 and are consistent with the upper end of our full year guidance for 2006. The company attributed the overall decrease in production due to bad weather in California.

“Construction spending remains strong due to continuing economic and infrastructure growth,” James said. “Our broad geographic footprint, with operations strategically located in high growth U.S. markets, positions us to benefit from the continuing strength in construction activity and provides regional diversification. Highway construction should benefit from both higher funding as a result of the new multi-year federal highway bill passed in 2005 and improving state and local tax receipts. The recovery in private nonresidential construction appears to be broad-based and is evident in most categories of this end market. Approximately 75 percent of our aggregates shipments go to public construction and private nonresidential construction and we are well positioned to benefit from growing demand in these end markets. Residential construction activity remains at high levels. Key markets such as Texas and Georgia continue to have significant backlogs of residential construction activity while in certain other markets, such as California, Arizona and Florida, residential demand is slowing."Your comment?

Wednesday, August 02, 2006

Environmental winners

Five individual aggregates producing operations from around the United States have received the prestigious Environmental Excellence Gold Award from the National Stone, Sand and Gravel Association in recognition of their superior performance as environmental stewards during the past year. Vulcan Materials Co.'s Pineville Quarry in Charlotte, N.C., and Sacramento Aggregates Facility in Sacramento, Calif.; Lafarge North America's Morgan County Quarry in Buckhead, Ga.; and Martin Marietta Materials' New Braunfels Quarry in New Braunfels, Texas, and Snyder Quarry in Snyder, Okla., received top honors in this year's event. Your comment?

Tuesday, August 01, 2006

Martin Marietta rolls on

Martin Marietta Materials announced financial results for the second quarter and six months ended June 30, 2006, reporting record net sales, net earnings and earnings per share. Stephen P. Zelnak, Jr., Chairman and CEO of Martin Marietta Materials, stated, “Pricing strength across the Aggregates segment led to record quarterly earnings. The heritage aggregates average selling price increased nearly 12% with price increases being strongest in the high-growth southern markets. A decline of 2% in heritage aggregates shipments partially offset pricing gains. The decline in shipments for the quarter was primarily weather driven with North Carolina experiencing one of the wettest Junes in recorded history. Rail and barge transportation issues also played a role in keeping shipments below expectations."

“Aggregates product line gross margin as a percentage of net sales increased 220 basis points during the quarter. Pricing gains, coupled with our continued focus on cost management, more than offset aggregates shipment declines, significantly higher costs related to energy, supplies and freight embedded in the Corporation’s long-haul transportation network, and higher-than-expected start-up costs for our major capacity expansion projects. Diesel fuel, natural gas and liquid asphalt costs used in aggregates and asphalt production increased nearly $9 million when compared with the prior year’s quarter."

“The outlook for the Aggregates segment for the remainder of 2006 is positive. We currently expect aggregates shipments volume to increase 2% to 4% and aggregates pricing to increase 11.5% to 13% for the year. We expect the Aggregates segment operating margin to increase approximately 300 basis points." Your comment?