Aggregate volumes, pricing up in third quarter 2019 at Summit Materials

By |  October 31, 2019
Headshot: Tom Hill, Summit Materials

Hill

Third-quarter aggregate sales volumes increased 12.6 percent at Summit Materials, which reports its average sales prices in aggregate jumped 6.9 percent.

“With the exception of our ready-mix business, where volumes were impacted by rainy conditions in Texas, we experienced solid volume growth in our aggregates and asphalt businesses and price growth in all lines of business, which helped us rebound from setbacks in the first half of the year,” says Tom Hill, CEO of Summit Materials.”

Accordingly, aggregate net revenues increased by 25.5 percent to $137.5 million in the third quarter, when compared to the prior-year period. Aggregate adjusted cash gross profit margin declined slightly to 68.6 percent in the third quarter compared to 69.2 percent in the prior-year period on product mix.

Organic aggregate sales volumes, meanwhile, increased 11.4 percent in the quarter compared to the prior-year period on higher organic volume growth in the company’s east and west segments. Organic average selling prices on aggregate increased 6.9 percent in the quarter due to improvements in prices, particularly in the east related to levee repair work in Missouri.

“Levee repair work in Missouri and market conditions in Kansas drove aggregates volumes higher, and although ready-mix volumes were higher in the quarter, we did lose some sales due to Tropical Storm Imelda in the Houston market,” Hill says.

Kevin Yanik

About the Author:

Kevin Yanik is the editor-in-chief of Pit & Quarry magazine. Yanik can be reached at 216-706-3724 or kyanik@northcoastmedia.net.

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