St Lawrence Cement Group Inc reported sales of $454.6 million for the third quarter ended September 30, 2006, compared to $449.3m for the same period last year, an increase of 1.2%.
The higher sales reflect increased selling prices for construction materials and strong activity in construction services, offset by lower sales volumes and a negative foreign exchange impact of approximately $6.0 million on the translation of U.S. sales into Canadian currency for reporting purposes.
Sales volumes for cementitious materials in the quarter decreased by approximately 9% compared to the third quarter of last year while volumes for aggregates and ready-mix concrete decreased by 10% and 2%, respectively, compared to the same 2005 period. Demand for construction materials was affected mainly by a slowdown in residential construction activity in the Company’s markets and to a lesser extent unfavourable weather conditions.
In contrast, the Company’s construction services business in Ontario continued to experience strong demand with a high level of backlogs.