St Lawrence Cement Group Inc - 2Q results

St Lawrence Cement Group Inc - 2Q results
Published: 01 August 2007

St. Lawrence Cement Group Inc reported consolidated sales of $366.7 million for the second quarter ended June 30, 2007, compared to $364.7 million for the same period last year. Sales of aggregates, ready-mix concrete and construction services increased compared to the 2006 second quarter, partly offset by lower sales of cementitious materials and a negative foreign exchange impact of approximately $1.3 million on the translation of U.S. sales into Canadian currency for reporting purposes. 
 
Sales volumes of aggregates and ready-mix concrete increased by 4% and 5%, respectively, while construction services revenues were up 2%. Reflecting softening demand in our U.S. markets, sales volumes of cementitious materials decreased by approximately 8% compared to the same 2006 period.  
 
Gross profit decreased by $2.3 million to $88.7 million compared to the 2006 second quarter. This decrease is attributable to lower sales of cementitious materials, increases in energy, distribution and maintenance costs as well as significantly higher costs of cement imported into the U.S., partly offset by higher selling prices of all construction materials.  
 
Selling and administrative expenses were stable at $25.7 million compared to $25.5 million for the second quarter last year. Depreciation expenses increased by $1.2 million to $15.6 million compared to the same period last year as a result of higher capital spending, including business acquisitions in the current period, as well as the impact of completed projects put into service in the period. 
 
Consequently, operating profit decreased to $47.4 million compared to $51.1 million for the second quarter of 2006.