GLG News by Cement Industry Experts in GLG Member Programs

Ron MusolinoPresidentRM Consulting

Norbord's OSB Survival Strategy in North America

February 27, 2008

Analysis of:Norbord To Review Operating Alternatives At Genk, Belgium | www.newswire.ca

Norbord's European and UK operations comprise a relatively small part of their revenues.  OSB and wood plant operations in North America provide the majority.  It will be their ability to survive the depressed North American housing market in 2008 that will determine their success and continued viability.

Ron MusolinoPresidentRM Consulting

Homebuilding Decline Affects More Than Home Builder

February 11, 2008

Analysis of:Toll Brothers' First Quarter Revenues Off 22% | www.builderonline.com

The home building industry remains depressed and builders are reporting falling revenues and big losses.  For those who survive, will the infrastructure of suppliers, distributors and tradesmen be there to support them for the next "up" building cycle?

Ron MusolinoPresidentRM Consulting

GP strengthens position as major plywood panel producer

July 2, 2007

Analysis of:Georgia-Pacific Completes Acquisition of International Paper Wood Products Facilities | www.gp.com

Plywood prices remain high in spite of depressed housing market.  GP's purchase of IP plants will help to strengthen those levels.  However, it will not affect its market position nor prestige as a major paper products manufacturer. 

Kirk CoynePresident and Chief Executive OfficerKSC Ventures Inc

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.

Kirk CoynePresident and Chief Executive OfficerKSC Ventures Inc

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?

Ron MusolinoPresidentRM Consulting

The Housing Market: Poised for a Sudden Reversal?

June 11, 2007

Analysis of:U.S.: Is The Housing Recession Starting To Recede? | www.businessweek.com

April's new home sales data showed the largest monthly gain in 14 years.  Could this signal the start of the next housing boom?  Several negative factors indicate otherwise.

Ron MusolinoPresidentRM Consulting

The Depressed Housing Market: How Long Can Building Products Companies Hold On?

May 30, 2007

Analysis of:Building Plans Fall to 10-Year Low, But Some See Hope | www.investors.com

Who among all the participants will survive the continuing slow housing market?  In this integrated industry, the pain from declining revenues and profits in the red span the gamut of participants, from builders down to wood cutters in the forest?  Is anyone exempt?  Who is positioned to survive?  Wood panel manufacturers (mostly OSB) are especially vulnerable, as prices are one fourth of what they were three years ago.  Who among the North American producers is best positioned to withstand a lengthy down cycle?  Who is most vulnerable? How do depressed wood product prices affect building products distributors?  Do low prices help a builder's bottom line? Since wood panels are commodities, shouldn't producers understand the nature of up and down cycles, i.e., good times and bad, and prepare for them?

Kirk CoynePresident and Chief Executive OfficerKSC Ventures Inc

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.

Kirk CoynePresident and Chief Executive OfficerKSC Ventures Inc

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.

Kirk CoynePresident and Chief Executive OfficerKSC Ventures Inc

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.

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