Margins improve at Rinker

Margins improve at Rinker
Published: 31 January 2007

For the nine months to the end of December, Rinker Group has produced a turnover 9.4% higher at US 4,151m, with the EBITDA advancing by11.7% to US$1,084.2m.  Net debt at the end of December stood at US$1,066m to give a gearing level of 46.4%, while US$358m of capital expenditure has been approved including further investment at the US$220m Florida cement works.   In January, three aggregates-based operations were added in Oregon, Utah and Tennessee, which together with the deals done in the final quarter of last year adds 3.6m tonnes of aggregates and 0.3m m³ of ready-mixed concrete to Rinker’s annual production figures.

The American operations generated a turnover of US$3,238m in the nine months, an increase of 9.5% and the EBITDA improved by 11.7% to US$937.4m.  Higher prices led to increased turnover and profitability in spite of lower volumes.  In the third quarter, cement prices were raised by 13% and lower freight costs reduced the cost of imported cement, while volumes were 12% lower and the trading profit from cement emerged 20% higher at US$$36m.  Volumes were down by 9% in aggregates and by 8% in concrete products.  

In Australia and elsewhere, turnover in the nine months increased by 9.2% to US$913m (Aus$ 1,195m) while the EBITDA declined by 0.4% to US$161.2m (Aus$211.1m).  With the exception of New South Wales, aggregates volumes are generally strong, particularly in Western Australia.