U.S. Concrete (RMIX) Lowers Q2 Guidance

July 22, 2008 9:10 AM EDT

U.S. Concrete (Nasdaq: RMIX) announced that its second quarter 2008 earnings from continuing operations are expected to be approximately $0.08 -- $0.09 per diluted share, which is below the Company's previously issued guidance.

U.S. Concrete's President and Chief Executive Officer, Michael W. Harlan, stated, "Beginning in May, our ready-mixed concrete sales volumes began to fall below our expectations, resulting in an approximate 9% volume shortfall and resulting in lower second quarter profitability. As compared to the second quarter of 2007, on a same-plant-sales basis, ready-mixed concrete sales volumes were down approximately six percent. Except for our west Texas operations, all regions experienced greater volume declines than anticipated. Our average ready-mixed concrete selling price improved 2.6 percent from the comparative quarter last year. However, our raw materials spread (revenue less materials costs) declined, driven by higher aggregate costs and increased diesel fuel costs. As a result, we expect second quarter EBITDA to be in the range of $18.5 million to $19.5 million. We face a challenging environment for sales volumes and we expect to see continued quarterly decreases in demand on a year-over-year basis for the balance of the year. We are aggressively managing our costs and capital spending in light of these economic conditions."

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