Feb. 26, 2021 – Summit Materials, in its quarterly report, detailed the performance of its past quarter and year, by region. The West Segment reported operating income of $176.5 million in 2020, compared to $109.2 million in 2019, due to higher revenue from all lines of business. Aggregates revenue in 2020 increased 15.9% over 2019, partly as a result of a 4.4% increase in organic volumes, led by volume growth in Texas, and a 1.8% increase in organic average selling prices. The company completed the acquisition of Multisources of Houston, and Valley Gravel of Abbotsford, British Columbia, Canada, in 2020, both of which are primarily aggregates businesses.
The East Segment reported operating income of $69.8 million for the full year 2020, compared to $101.8 million in 2019, primarily due to decreased asphalt and paving activity in Kentucky. Aggregates net revenue increased 1.3%, primarily due to a 3.0% increase in organic volume despite a decrease in organic average sales prices of 2.1%, as sales prices decreased in Missouri relative to 2019, which included more higher priced flood and levy volumes related to public repair work.
The Cement Segment reported operating income of $55.3 million in 2020, compared to $64.7 million in 2019. Cement Segment revenue decreased 6.9%, reflecting a 4.6% decrease in volume despite a 1.5% increase in price. Cement segment operating income declined in part due to lower sales volumes related to COVID-19, notably in the southern markets.
In the fourth quarter of 2020, the company’s West Segment reported operating income of $47.2 million , compared to $30.7 million in the prior year period. Improvements in operating income reflected increased demand for aggregates and ready-mix concrete in Utah and Texas. Aggregates revenue in the fourth quarter increased 43.1% over the prior year period, while organic volumes and average sales prices increased 15.9% and 2.3%, respectively. Ready-mix concrete revenue in the fourth quarter 2020 increased 12.3% over the prior year period, as organic volumes increased 8.8% and organic average sales prices increased 3.3%, reflecting favorable market conditions in Utah and Texas.
The East Segment reported operating income of $20.8 million in the fourth quarter 2020, compared to $29.8 million in the prior year period as lower asphalt revenues due to the ongoing fiscal constraints in Kentucky more than offset strength in ready-mix concrete. Aggregates revenue decreased 0.3%, as average selling prices decreased 7.0% on a difference in product mix from the year-ago quarter, which reflected significant flood repair work. The decrease in revenue was partially offset by a 6.4% increase in organic volumes on higher volumes in Kansas, Kentucky and Virginia.
The Cement Segment reported operating income of $20.8 million in the fourth quarter 2020, compared to $20.6 million in the prior year period. The segment reported organic sales volumes and organic average selling prices increased 4.5% and increased 2.8%, respectively, during the fourth quarter 2020 as compared to the prior year period.