Extracts re Rinker, from material found on the internet.
Heavy materials specialist Rinker remains in a growth phase. They are well run, with operations focussed in several high yield high growth areas. Including Arizona 10%pa, and Florida 8%pa.
The substantive 60%+ gain in price on the ASX to $14.72 today, July 18, 2005, on the most recent growth projections, from circa $9.10 early December, reflects this.
Housing and heavy infrastructure construction, and repair, apparently remains bouyant in key focus areas for Rinker, of Nevada, Arizona and Florida.
Especially the later, the State of Florida, which has now experienced six hurricanes in just 15 months.
A trend to more robust construction and infrastructure there, may favour Rinker.
The adverse pressure on construction companies evident here in Australia during the last three quarters, a minor area of operation for Rinker, has not yet materialised in the key focal areas of the USA.
The quality of the management is self evident. .....................
MELBOURNE, July 18 (Reuters) - "Australian heavy building materials maker Rinker Group Ltd. (ASX: RIN.ax) raised its full-year U.S. profit outlook on Monday after first quarter earnings rose 62 percent, sending its shares to record highs.
Buoyed by robust demand and higher prices, Rinker said it now expects its U.S. business, Rinker Materials, to achieve 30 percent growth in U.S. dollar earnings before interest and tax in the year to March 2006, up from a forecast of 20 to 25 percent growth.
Rinker's U.S. arm accounts for about 80 percent of earnings, with strongholds in the fast-growing states of Florida, Arizona and Nevada, where it competes against companies such as Vulcan Materials Co. VMC.N and Martin Marietta Materials Inc. MLM.N.
Analysts had expected Rinker to keep up its quarterly track record of upgrading its earnings forecasts after its rivals, including Florida Rock Industries Inc. FRK.N, flagged strong sales volumes and cement price increases.
* Florida, which represents about half of Rinker's U.S. sales, has had annual construction growth of 8 percent over the past 15 years, and Arizona 10 percent, outstripping 5 percent growth across the United States.
Rinker Materials makes crushed rock, cement, asphalt for highways and airports, concrete for homes, high-rise buildings, bridges and tunnels, and concrete pipes.
Armed with a strong balance sheet and low debt, Rinker is continuing to search for both bolt-on and larger acquisitions, although only at the right price."
RIN Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
