Martin Marietta. The company's sand and gravel shipments fell by 5% in the second quarter. "Despite the low sand and gravel shipments, these impressive results demonstrate the success of our business strategy of" value over production "and the durability of our business model in a variety of macroeconomic conditions."
Summit Materials had a similar story in the second quarter. "Continued pricing momentum across the portfolio, coupled with solid demand fundamentals and very strong operational execution, resulted in outstanding second quarter results and multiple financial records for our business," said Anne Noonan, president and CEO of
Summit Materials. Net income related to sand and gravel aggregates increased 13% in the quarter.
The following is a summary of the second quarter results of several producers involved in the sand and gravel business.
Vulcan Materials
Although Vulcan's aggregate shipments fell 1% in the second quarter, the company's aggregate freight-adjusted selling price increased 15% from the same period last year, or 2
per ton. Pricing momentum and solid operational execution in the aggregates business drove a 22% improvement in cash gross margin per tonne in the quarter. "Our earnings growth through the first half of 2023 reflects the continued execution of our strategy and the compounding benefits from the strength of our sandstone-led business," said Tom Hill, chairman and chief executive officer
of Vulcan. Aggregate gross margin expanded by 230 basis points and cash gross profit per ton improved by 23% to 8 per ton. Strong sales and operational momentum across our businesses is expected to continue throughout the remainder of the year. Shipments benefited from large industrial projects, and residential construction activity was better than expected.
Martin Marietta
While Martin Marietta's aggregate shipments fell nearly 6% in the second quarter, the company's gross profit related to aggregate shipments jumped 20.7% to 3
. Martin Marietta's total revenue grew 10.9% in the second quarter. 18. The company's building materials business, which includes aggregates, cement, ready-mix concrete, asphalt and paving, created 17.
"We continue to expect sand and gravel demand to accelerate in the second half of 2023 as record public funding for infrastructure and manufacturing begins to flow into the U.S. economy," Nye said. "This well-documented stepped-up investment should largely offset the current residential construction downturn, which we expect to bottom out in the third quarter of 2023."
Heidelberg Materials said its North American aggregate deliveries were actually up slightly compared to the first half of 2022. Highway infrastructure and large manufacturing facility projects in the Midwest, in particular, contributed to this growth. Heidelberg Materials said sales in the Southeast and Southwest remained stable as the level of construction activity continued to improve.
Cemex
's U.S. business hit a record high in the second quarter, with EBITDA up 87% to 3. 5%, while net sales in the U.S. rose 10%. 14.
"Our pricing strategy, the success of our complementary investment and urbanization solutions businesses, and the slowdown in cost inflation are driving a very strong year for our company," said Fernando Gonz González, CEO of Cemex.
Summit Materials
Summit's aggregate-related quarterly net income jumped 13% to $182.5 million, while aggregate average selling prices rose 14
. Overall, the company's adjusted cash gross margin declined to 53. In the second quarter of 2022, the ratio was 53.
In addition, Summit's aggregate sales volume declined in the second quarter. Adverse weather conditions and weak residential construction in the western region were also factors. Building products revenue rose 8% to 2 in the second quarter
, Alcosa
said. Higher pricing and volume growth in recycled aggregates drove this growth, while organic volume growth and acquisition-related contributions in the company's trench support business. Revenue related to natural aggregates and specialty materials was relatively unchanged as higher prices offset lower sales volumes
, Arcosa said. "In building products, we continue to successfully increase pricing, manage cost pressures and drive solid unit profitability for natural and recycled aggregates," said Antonio Carrillo, president and CEO
of Arcosa. "However, overall adjusted segment EBITDA margins were impacted by operational inefficiencies in our Specialty Materials business that we are addressing."
Knife River Corp.
of Knife River The company, which trades separately on the NYSE, completed its spin-off from MDU Resources in June.
"As we look back at the quarter, each of our geographies benefited from disciplined materials pricing, targeted bids and solid execution as key components of our competitive differentiation strategy — Knife River's plans to improve adjusted EBITDA margins and execute on other decisive measure aimed at sustained profitability." Brian Gray, president and CEO of Knife River, said, "As we enter the heart of the construction season, we want to further leverage our aggregate-led, vertically integrated business model to take advantage of industry tailwinds."
Knife River reported second-quarter consolidated revenue of 7. The company said each of its regional segments performed well and all of its combined product lines raised prices by 10%.
, Granite's president and chief executive officer.
USLM said demand from environmental and oil and gas service customers was a key factor in volume growth.
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