Economy & Market
Summit's cement business revenues jump in 2016
Net revenues at Summit Materials cement business have increased by 12.7 per cent in 4Q16 and 49.3 per cent for the full year, as the company benefitted from the acquisition of the Davenport business from Lafarge North America in 2015, as well as rising average selling prices and strong demand in its core markets along the Mississippi River.
The company posted quarterly revenues of $70.7 million in 4Q16, with cement sales volumes up 0.6 per cent and average selling prices up 6.8 per cent. Quarterly earnings were 20.5 per cent up on the previous year at $35.6 million.
For the year, the cement business - including sales from the Davenport assets - reported revenues of $264.6 million with sales volumes up 37 per cent and average sales prices up 7.5 per cent. Earnings were up 51 per cent at $113 million, boosted by improved efficiencies and continued cost reductions.
"Our cement business represents a clear catalyst for growth heading into 2017," said Tom Hill, Summit's CEO in a statement. "Limited domestic production capacity and continued growth in US demand have combined to create opportunities for sustained growth in industry cement pricing."