Summit Materials announces 2Q results and new CEO
US-based Summit Materials saw a 24.5 per cent rise in operating income for the second quarter of 2020 to US$100.1m from US$80.4m in the year-ago period. Adjusted EBITDA also advanced 14.1 per cent YoY to US$160.2m from US$140.5m.
Cement sales volumes declined 6.3 per cent YoY in the 2Q20, while prices were up 1.2 per cent.
"Despite economic uncertainty, Summit experienced resilient demand and favourable weather conditions, particularly in Utah and Kansas, which led to record 2Q net revenue, net income, and adjusted EBITDA,” said Thomas Hill, CEO.
The company is also maintaining its previously-announced 2020 capital expenditure guidance at US$145-160m, which it expects will include US$50-60m for greenfield projects.
"While we've only seen a limited impact from COVID-19 thus far, the North American economic outlook remains uncertain. We continue to engage in contingency planning and proactive reviews of capital spending, receivables and working capital under various demand scenarios. Summit reported over US$580m in available liquidity at quarter-end, and is in a strong financial position," said Brian Harris, CFO.
New CEO appointment
Mr Hill is planning to step down from his role as president, CEO and member of the board, effective 1 September 2020. At that time, Anne Noonan will be appointed president, CEO and member of the board. However, Mr Hill will serve as a senior advisor through to the end of the year. From 1 January 2021, he will transition into a consulting role until July 2023.
