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Big News from Summit


RR072220 SummitLogoJuly 22, 2020 – With the economic impact of COVID-19 taking its toll nationwide, many people wondered what the publicly traded aggregates companies would report for the second quarter. We have the first report, from Summit Materials, and it is a good one. For the three months ended June 27, organic sales volumes increased 2.6% in aggregates. Aggregates net revenues increased by $1.3 million to $130.0 million in the second quarter 2020 when compared to the prior-year period. Aggregates adjusted cash gross profit margin increased to 63.9% in the second quarter 2020 compared to 61.4% on higher volumes and product mix. Aggregates sales volumes increased 2.6% in the second quarter 2020, when compared to the prior-year period on higher organic volume growth, particularly in Utah, Kansas, Missouri and Texas. Average selling prices for aggregates decreased 0.2% in the second quarter 2020. On a mix-adjusted basis, Summit estimates that aggregates prices have increased by approximately 2.5% year-to-date in 2020. Second piece of big news is that company president Tom Hill is stepping down to be replaced by Anne Noonan. I have had the privilege of interviewing Tom, and he was friendly, knowledgeable and forthright. Look for more on that transition in the coming months.