GLG News by Building Materials Industry Experts

Kirk CoynePresident and Chief Executive OfficerKSC Ventures Inc

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.

Kirk CoynePresident and Chief Executive OfficerKSC Ventures Inc

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.

Kirk CoynePresident and Chief Executive OfficerKSC Ventures Inc

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.

Kirk CoynePresident and Chief Executive OfficerKSC Ventures Inc

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.

Kirk CoynePresident and Chief Executive OfficerKSC Ventures Inc

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.

Kirk CoynePresident and Chief Executive OfficerKSC Ventures Inc

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.

Dwight "Rick" TomlinsonConsultantRick Tomlinson Consulting

Elk Story Not Over Yet

January 12, 2007

Analysis of:ElkCorp Board Advises Against BMCA Offer | www.forbes.com

Elk happens to be in the position of being desired by two different companies.  One they planned for, and the other they did not.  One road leads to survival and a continuation of the brand, the other, well, probably not!

David GordonPrincipalChannel Marketing Group, Inc.

Is $210M Relevant?

January 10, 2007

Analysis of:A $210 Million Parachute | www.thestar.com

Much has been written and said about Nardelli's severance package vs. his accomplishments at Home Depot.  He has had some successes, but when it is compared to Lowe's from a Wall Street perspective, he lagged.  Did the Board decide to enter 2007 with a clean slate? Is he a victim of arrogance (witness the 2006 shareholder meeting)? or did he know that things weren't going to get better in the near future (although the housing market seems to have stabilized)?

Only time will tell, but the important question is "does HD's strategy need to change?"

Dwight "Rick" TomlinsonConsultantRick Tomlinson Consulting

Is the Home Depot Ship Changing Course?

January 9, 2007

Analysis of:A $210 Million Parachute | www.thestar.com

Articles on Nardelli being paid too much or not shareholder friendly abound.  This article goes further into the direction of Home Depot and the General Electric way of doing things.  Changing a cowboy culture and cutting costs were seen by Nardelli as the right thing.  Will that course continue?  How much change is needed? 

Kirk CoynePresident and Chief Executive OfficerKSC Ventures Inc

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.

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