Mr. Kirk Coyne

GLG News by Mr. Kirk Coyne, President and Chief Executive Officer

GLG News is now G+ Insights

G+ is a community for professionals, academics and entrepreneurs to connect through online discussions and in-person meetings. You will continue to see G+ Insights (formerly GLG News) here as well as on the G+ website, where you can share and discuss the G+ Insights you read.

Housing Outlook Remains Bleak

June 28, 2007

Analysis of:Still Waiting: The Single-Family Recovery | www.cement.org

The Portland Cement Association (PCA) has recently published a new article with a pessimistic view of the housing situation. It is becoming more likely that 2007 and 2008 construction activity is going to suffer despite relative strength in non residential and public works construction. Construction materials demand is likely to register more substantial declines than previously forecast, and price increases will likely meet greater resistance as demand falls, further suggesting that the construction materials sector has entered a cyclical downturn.

A Steeper Slump in Cement Consumption in 2007

June 20, 2007

Analysis of:Recent Data Suggests Spring Forecast Optimistic | www.cement.org

The Portland Cement Association (PCA) is now suggesting a dimmer outlook for construction activity and cement consumption than previously forecast. Cement demand in 2007 had been forecast by the PCA to decline only 1.5%, but is now suggesting a drop of 3%-4% as the more likely scenario. Could this be the beginning of even further downward revisions in the outlook for construction materials demand in 2007? And, perhaps more importantly, how will pricing hold up in the face of declining demand?

Questionable Timing of US Construction Materials Acquisitions

May 21, 2007

Analysis of:Florida Rock Industries, Inc Announces Second Quarter Results | online.wsj.com

It isn’t clear the extent to which the housing slump was factored into the assessments of the recent pending transactions involving construction materials companies. It is clear, however, that the industry is experiencing significant declines in sales volumes from the housing downturn.

Global Construction Materials Consolidation Continues

May 21, 2007

Analysis of:HeidelbergCement to buy Hanson for $15.8 billion | www.marketwatch.com

The recent announcement that HeidelbergCement AG of Germany has agreed to buy Hanson PLC of the UK further demonstrates the acceleration of the consolidation process in the construction materials sector. Furthermore, this deal, valued at $15.8 billion, continues the trend toward mega deals involving players with significant constructions aggregates operations.

What's Next in Construction Materials Industry Consolidation?

April 27, 2007

Analysis of:Rinker Backs New Cemex Bid | online.wsj.com

Now that the Cemex-Rinker deal appears headed for completion with the increased bid by Cemex, it leads one to ponder the future of the consolidation process in the construction materials industry.

There is reason to believe that the consolidation process will remain active, but there could be some impact from the slower construction environment.

Cemex-Rinker--What's Next?

April 9, 2007

Analysis of:Cemex's Rinker Bid Gets U.S. Approval:Offer May Rise | www.bloomberg.com

Now that the Cemex-Rinker deal has received U. S. regulatory approval, it appears that the path is clear for bringing finality to the acquisition of Rinker. But the question remians by whom and for how much?

The Changing Complexion of the Construction Materials scene in Florida (and beyond)

March 28, 2007

Analysis of:American Cement gets heavy-hitter Oldcastle as partner | cementamericas.com

 

Why are the construction materials giants focusing so much attention on Florida?

Acquisitions, greenfield cement plants and capacity expansions are being announced with surprising frequency over the past year in Florida (Cemex/Rinker, Vulcan/Florida Rock, Oldcastle/American, Hanson./Civil & Marine).

With so much investment activity among the construction materials players in Florida in the last year, one has to wonder what is next.

Slower Growth Ahead for Construction Materials

March 19, 2007

Analysis of:Forecast 2007 (Cement) | cementamericas.com

The slowdown that began in cement and related construction materials in mid 2006 will extend into 2007 and perhaps beyond, led mainly by the housing slowdown.

There are marked regional disparities in the impact of the slowdown, with northern and coastal markets generally weakest and southern and certain western markets fairing better.

Cement supply will be more abundant in the next two years than in the past three, as a result of significant amounts of imports and domestic capacity additions.

Will the construction slowdown be a short-term blip or a more pronounced slide? This question, coupled with the impact on pricing, are keys to the impact on construction materials companies over the next couple of years.

The Slump in Housing Reflected in Cement Demand Decline

February 27, 2007

Analysis of:Housing Drop Contributes to Lower Forecast for Cement | www.cement.org

If one wasn’t sure how the decline in housing is impacting the construction materials sector, take a look at the trend in cement consumption. There was a notable negative shift that occurred in mid 2006 (earlier in some markets like Northern California), which is likely to continue through 2007. The tide has clearly turned and it may take some time for the current decline in construction to bottom out.

Cement Data Confirms Construction Slowdown

February 26, 2007

Analysis of:Two Hands Needed to Talk About Construction Spending in November, AGC Economist Says | www.agc.org

If one wasn’t sure how the decline in housing is impacting the construction materials sector, take a look at the trend in cement consumption. There was a notable negative shift that occurred in mid 2006 (earlier in some markets like Northern California), which is likely to continue throughout 2007. The tide has clearly turned and it may take some time for the current decline in construction to bottom out.

The rage with aggregates in Florida

February 21, 2007

Analysis of:Vulcan Materials to Buy Florida Rock for $4.6 Billion | www.bloomberg.com

 The recent announcement that Vulcan Materials has agreed to buy Florida Rock Industries marks the second mega construction materials deal announced in the last six months. In October 2006, Cemex launched a hostile takeover attempt of Rinker Materials valued at $12.8 Billion and on February 19, 2007, Vulcan entered into an agreement to buy Florida Rock Industries for $4.6 Billion. What do both of these transactions have in common? The target company in both cases has a strong presence in aggregates in the state of Florida. These deals reflect big bets on both the future of Florida and the pricing power of construction aggregates. This latest transaction also further demonstrates the continuing consolidation trend of the national (and global) construction materials industry, particularly aggregates and cement.

What direction is construction spending headed?

January 16, 2007

Analysis of:Two Hands Needed to Talk About Construction Spending in November, AGC Economist Says | www.agc.org

The latest data on construction spending for November confirms the contrasting stories between residential and non-residential construction. The theme of the November report is likely to be reflected throughout 2007-weak single family housing and stronger multifamily and non-residental construction.

Cement Industry : A Global Story

January 16, 2007

Analysis of:World cement consumtion growth expected to continue | cementamericas.com

Worldwide demand growth for cement is, not surprisingly being led by developing countries (Asia, Middle East, South America and Eastern Europe). The cement industry has become increasingly global and the big players are international and pursuing growth around the globe. The market effects of this globalization might be more local than one would think.

All is not bleak for the building industry

January 16, 2007

Analysis of:A Look Ahead for Real Estate | online.wsj.com

While the decline in housing is making all of the headlines, it does not appear that the building and construction industry as a whole is falling through the floor. It is a fact that homebuilding is contracting, but other sectors are picking up some of the slack, namely office, retail and industrial.

Will the downturn lead to additional consolidation in the construction materials space?

January 16, 2007

Analysis of:Eagle Materials Hovers Until Homebuilding Recovers | www.fool.com

Eagle Materials, a regional US construction materials player may be a microcosm of the industry as a whole, as it pursues an aggressive expansion plan heading into an industry downturn. Perhaps this will lead to additional industry consolidation as valuations become more modest and remaining independents find themselves under pursuit by the global players.

US Cement Industry-Is the party over?

December 28, 2006

Analysis of:Housing Drop Contributes to Lower Forecast for Cement | www.cement.org

The housing slump is negatively impacting cement demand in the US in 2006 and 2007.

More importantly, the slowdown in cement consumption will almost certainly lead to a more difficult competitive environment for the industry in the next year or two, even after enjoying widespread prosperity the past three years.

Cemex growing into Industry Leader

December 20, 2006

Analysis of:Cemex moves forward with hostile Rinker bid | money.cnn.com

Cemex is pursuing its aggressive growth strategy, both through vertical integration (into concrete) and horizontal integration (into aggregates) with its takeover effort for Rinker.

Cemex is establishing itself as the clear leader in the US construction materials industry, and becoming a global giant in the sector as well.

Cemex's move underscores some of the strategic changes in progress or its on the horizon in the global and U.S. construction materials industry.

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