U.S. Concrete Inc. reported results for the quarter ended June 30:
- Total consolidated revenue was $367.5 million.
- Aggregate products revenue of $49.5 million on sales volume of 2.9 million tons increased 2.1% compared to last year’s second quarter.
- Aggregate products average sales price of $11.83 per ton increased 6.5% compared to last year’s second quarter.
- Ready-mixed concrete revenue was $314 million on sales volume of 2.3 million cu. yd.
- Ready-mixed concrete average sales price of $138.40 per cu. yd. increased 4.0% compared to last year’s second quarter.
William J. Sandbrook, chairman and chief executive officer of U.S. Concrete, Inc. stated, “The improved weather that we are experiencing this summer is in stark contrast to the record-breaking rainfall we endured during April, May and June in Texas. The weather-related impact was dramatic in sharply reducing ready-mixed concrete shipments in Dallas-Ft. Worth and West Texas. Furthermore, flooding on the Red River limited our ability to operate one of our sandplants dedicated to supplying a portion of our internal fine aggregates needs in the DFW Metroplex. To compound the historically bad weather in DFW, our other markets also experienced significant rainfall, as the second quarter in New York was the wettest in the last 10 years and May in Northern California was the wettest in more than 20 years. However, we continue to see strong underlying fundamental economic conditions in all of our regional markets and a strong pricing environment in both our ready-mixed concrete and aggregate products segments. This is evidenced by our solid pricing improvement in the second quarter as our year-over-year ready-mix and aggregates average selling prices increased 4% and 6.5%, respectively. With our solid backlog, robust project-bidding opportunities and more normalized weather patterns, as evidenced in July,we anticipate an improved second half of the year. Increased margin expansion opportunities as a result of both meaningful volume increases and our internally driven operational improvement initiatives will generate positive and improved momentum for the remainder of the year.”
Sandbrook concluded, “While wet weather defers product sales into future periods, these sales are not lost. I am extremely encouraged by the overall health of the economy and the future prospects for a vibrant demand environment for our products. Low interest rates, record low unemployment, healthy state budgets, the flow through of local and state transportation initiatives and the prospects for increased federal surface transportation spending, all point to an optimistic view of the future.”