With $5.84 billion in cement, aggregate and ready mixed concrete sales, North America led five LafargeHolcim Ltd. regions in 2015, besting overall figures from Asia Pacific, Europe, Latin America and Middle East Africa businesses. In its inaugural annual report, the company credits continuing U.S. recovery, cost optimization and price management for solid North America region results. Cement and aggregate volumes increased as a whole across the U.S. and eastern Canada, offset partially by a) reduced demand in Texas and western Canada markets, where oil and commodity investments were under pressure; and, b) merger-driven divestments in some states. A double-digit increase in U.S. operating EBITDA (earnings before interest, taxes, depreciation, amortization) stemmed from active cost, price and margin management.
|Material||North America||Company Total|
|Cement||24 million tons||282 million tons|
|Aggregate||127 million tons||322 million tons|
|Ready Mixed||12.2 million yd.||74.3 million yd.|
|Net Sales||$5.84 billion||$30.3 billion|
|EBITDA||$1.15 billion||$4.78 billion|
LafargeHolcim formed in mid-2015 through a Lafarge Group and Holcim Ltd. stock-for-stock exchange. CEO Eric Olsen weighs in on year-end results and progress eight months into the merger: “Many of the key elements of the merger are now behind us. Our organization is in place; synergies will continue to gain momentum in 2016 with notably more than [$464 million] of incremental EBITDA synergies expected for this year; and we have taken decisive actions to further adjust and streamline costs, notably in the most difficult markets.”
U.S. CONCRETE + GRECO BROS.
Texas-based U.S. Concrete Inc. has acquired the assets of Greco Brothers Concrete of L.I., Inc., and will integrate the ready mixed producer’s two plants and 37-mixer fleet into its New York City business, Ferrara Bros. LLC. Greco Brothers’ respected market presence reflects a nearly 60-year track record of deliveries to commercial and residential building, plus public works projects in the boroughs of Brooklyn, Queens, Manhattan and Staten Island.
“This acquisition further demonstrates our commitment to be a leading producer of ready-mixed concrete in the New York metro area,” says U.S. Concrete CEO William Sandbrook. “We believe the New York City market is poised for strong [concrete] demand with its growing population, economic development, and redevelopment activity. The combination of Greco with Ferrara Bros. will offer significant opportunities to service our expanded customer base, optimize service efficiencies and enhance raw material purchasing savings.”