HOUSTON, Sept. 25 /PRNewswire-FirstCall/ -- U.S. Concrete, Inc. announced today that Standard & Poor's has updated its Corporate Credit Rating on the Company, retaining its corporate rating of B+ and its Positive outlook.
In its report Standard & Poor's cited the following major rating factors as strengths:
* Good market position in the ready-mixed concrete market, * Leading position in several of its markets, including northern California, northern New Jersey and west Texas * Positive non-residential construction activity * Continued favorable pricing environment. Standard and Poor's also cited the following weaknesses: * Highly competitive operating environment, * Cyclical end markets, * Exposure to residential construction, * Limited geographic diversity, * Aggressive growth strategy * Somewhat aggressive debt leverage.
"Given the recent turmoil in the capital markets, the reconfirmation of our B+ rating and Positive outlook should be reassuring to both our equity and debt investors," stated Michael W. Harlan, U.S. Concrete's President and Chief Executive Officer. "Our liquidity and capital structure was solid at the end of the 2nd quarter of 2007 and we expect it to further strengthen during the 3rd quarter of 2007."
We invite you to view the report in its entirety, by visiting U.S. Concrete's website.
U.S. Concrete services the construction industry in several major markets in the United States through its two business segments: ready-mixed concrete and concrete-related products; and western precast concrete. The Company has 150 fixed and nine portable ready-mixed concrete plants, nine pre-cast concrete plants, three concrete block plants and eight aggregates facilities. During 2006, these facilities produced approximately 9.1 million cubic yards of ready-mixed concrete, 4.0 million eight-inch equivalent block units and 4.6 million tons of aggregates. For more information on U.S. Concrete, visit http://www.us-concrete.com/.
CAUTIONARY STATEMENT REGARDING FORWARD LOOKING STATEMENTS
This press release contains various forward-looking statements and information that are based on management's belief, as well as assumptions made by and information currently available to management. These forward-looking statements speak only as of the date of this press release. The Company disclaims any obligation to update these statements and cautions you not to rely unduly on them. Forward-looking information includes, but is not limited to, statements regarding the Company's liquidity and capital structure, and the effect of Standard & Poor's Corporate Credit Rating on the Company. Although U.S. Concrete believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that those expectations will prove to have been correct. Such statements are subject to certain risks, uncertainties and assumptions, including, among other matters: general and regional economic conditions; the level of activity in the construction industry; the ability of U.S. Concrete to effectively integrate the operations of acquired companies; development of adequate management infrastructure; departure of key personnel; access to labor; union disruption; competitive factors; government regulations; exposure to environmental and other liabilities; the cyclical and seasonal nature of the Company's business; adverse weather conditions; the availability and pricing of raw materials; and general risks related to the industry and markets in which U.S. Concrete operates. Should one or more of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expected. These risks, as well as others, are discussed in greater detail in U.S. Concrete's filings with the Securities and Exchange Commission, including U.S. Concrete's Annual Report on Form 10-K for the year ended December 31, 2006, and the Company's subsequently filed Quarterly Report on Form 10-Q.
