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GLG News^SM Analyses by this Study Group's Leading Experts(?)

uk building materials outlook

July 30, 2009

Analysis by:Allan Durning, Executive Chairman,

Analysis of:uk building materials outlook through to 2013 | www.apdltd.biz

Despite the recent comments about recovery and "green shoots" the evidence would still indicate that we have some distance to travel before the building material industry returns to the levels of volumes enjoyed in the period circa 2004-2007 pre the market crash.Strong performance in the RMI  and Infrastructure markets will help offset weak demand in the other sectors.

Cemex Pricing Increase Overly Optimistic

September 3, 2008

Analysis by:Keith Jones, President,

Analysis of:Cemex Hikes Cement Prices By $25 Per Cubic Yard | www.aggregateresearch.com

Cemex announced an across-the-board $25/yard price increase for ready mixed concrete for all its operations in the U.S.  This increase is an overly simplistic plan for improving the profitability of the company in the U.S.  Cemex ignores the economics of supply and demand and the specific dynamics of each of its markets by attempting this overall increase. Even if one were to give Cemex credit for attempting to be the market leader in ready mix concrete, a price hike does nothing to change the existing market conditions in each market.  Demand will not increase in any given market nor will this price increase reduce demand.  The end result will be to drive existing Cemex customers to other ready mix producers that are competitors in each market.  These competitors will price ready mix, in actuality just a commodity, below Cemex to get the sale.  Consumers in the market are more driven by price than company loyalty.  This same price consciousness can also overcome customer service.

Multinational Cement Companies Continue Consolidation

September 3, 2008

Analysis by:Keith Jones, President,

Analysis of:Europe Slowdown Could Crumble Cement Makers | www.forbes.com

Acquisitions within the construction materials industry have continued in strong fashion, with multinational cement producers leading the way.  Bigger and bigger deals are being put together by the world's largest cement producers, both in the U.S. and abroad.  These producers are locked in a battle to become ever larger and diversified to keep pace with their competitors.   The U.S. is in a downward construction cycle, creating large reductions in tonnage volumes for most producers in the U.S., both domestic and foreign.  The lack of supply in many markets and the logistics of transporting these products have worked to maintain strong pricing increases.  These pricing increases have almost offset tonnage reductions to kept revenues and profits level or only slightly reduced. Whether these same conditions will carryover into other markets around the world are yet to be seen.  The reduction in share price of these public companies though will only fuel continued consolidation.

Is Noland's market share what it once was??

January 10, 2008

Analysis by:George Collins, Chief Operating Officer,

Analysis of:Nordyne Partners With WinWholesale, Noland | www.achrnews.com

Ruud/Rheem's loss at Noland may well be not as severe as it appears on the surface. Since Noland was sold to Winn Wholesale integration has progressed at a slow pace. Both organizations continue to run operations separately. That was not the plan by Winn management when Noland was originally purchased. Noland has and continues to close branches. Noland's market share in Florida has suffered dearly these last two years. They also have lost key management personnel since the sale to Winn.  

Housing Outlook Remains Bleak

June 28, 2007

Analysis by:Kirk Coyne, President and Chief Executive Officer,

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.

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