Materials & Contracting David C. Barney President & CEO, Knife River Corporation Building A Strong America 47
Construction Materials Industry Leader Top 10 U.S. aggregate producer Increasingly valuable aggregate reserves totaling 1.1B tons 1.6B - 1.8B in annual revenue projected for 2014 Safety leader RIR 55% lower than industry LTAR 92%…
Operational Capabilities Materials Construction Aggregate General contractor Asphalt Subcontractor Ready-mix concrete Aggregate placement Liquid asphalt Asphalt paving Cement sales Concrete construction Prestress/precast…
First Half Earnings YTD Earnings (in millions) Update 6/30/13 6/30/14 Typical seasonal loss 0 Weather impacts Strong backlog (10.5M) Material pricing up -10 (13.0M) -20 Materials 50
Economic Indicators Year-over-year data June 2013 June 2014 Housing Starts 9.8% 13.7% Building Permits 18.7% 3.7% Total Construction Spending 3.3% 5.5% Pvt. Construction Spending 9.7% 9.2% Pub. Construction Spending (9.3%)…
2014 Highlights Record backlog Higher material volumes Housing subdivision demand Steady growth in our markets Major projects Materials 53
2014 Highlights Watford City (ND) Bypass 55.2M 9 miles, 4 lanes 2.1M cubic yards of earthwork 520K tons of aggregate 200K tons of asphalt 30K cubic yards of concrete 75% complete Materials 54
2014 Highlights I-84 Interchange, Boise 28M Adding 2 lanes on I-84 311K cubic yards of excavation 114K tons of aggregate 78K tons of asphalt 40% complete Materials 55
2014 Highlights Bozeman Airport/Interchange 20M Building I-90 access to Bozeman airport; Belgrade interchange 608K cubic yards of earthwork 231K tons of aggregate 49K tons of asphalt 8,700 cubic yards of concrete 70%…
Outlook Markets strengthening in key areas Strong national indicators for business Continued margin and volume increases on materials Optimistic that well see continued housing recovery and growth Materials 57
Materials & Contracting Building A Strong America 58