www.harriswilliams.com Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is a private limited company incorporated under English law with its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales (registration number 7078852). Harris Williams & Co. Ltd is authorized and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business. BUILDING PRODUCTS & MATERIALS INDUSTRY UPDATE │ MAY 2017
13
Embed
BUILDING PRODUCTS & MATERIALS - … | Building Products & Services Stock Performance Current % of 2016 TEV / EBITDA EBITDA ($ in millions except per share data) Price LTM High Mkt.
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
www.harriswilliams.com
Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is a private limited company incorporated under English law with its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales (registration number 7078852). Harris Williams & Co. Ltd is authorized and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.
BUILDING PRODUCTS & MATERIALSINDUSTRY UPDATE │ MAY 2017
Harris Williams & Co. is pleased to present our Building Products and MaterialsIndustry Update for March 2017. This report provides commentary and analysis oncurrent capital market trends and merger and acquisition dynamics within theglobal building products and materials industry.
We hope you find this edition helpful and encourage you to contact us directly ifyou would like to discuss our perspective on current industry trends and M&Aopportunities or our relevant industry experience.
BUILDING PRODUCTS & MATERIALS
INDUSTRY UPDATE │ MAY 2017
OUR PRACTICE
Harris Williams & Co. is a leading advisor to the building products and materialsindustry. Our significant experience covers a broad range of end markets,industries, and business models.
CONSTRUCTCONNECT LOWERS 2017 STARTS FORECAST DUE TO WEAK Q1 ACTIVITY1
HOUSEHOLD DEBT RETURNS TO PRE-CRASH HEIGHTS1
CONSTRUCTION INPUT PRICES UP IN APRIL, LED BY SHARP INCREASES IN ENERGY PRICES3
Construction Dive 5/18/2017
Consumer debt topped $12.7 trillion in Q1 2017, surpassing the previous high in Q3 2008. The growth is an indicator thatAmericans’ credit worthiness is returning to levels that enable them to qualify for loans and that lenders are becomingmore confident, according to The New York Times.
Today’s borrowers are economically healthier and more credit-worthy than they were immediately pre-crash, the LosAngeles Times reported. While delinquency rates for most debt types are low, they’re ticking upward for auto loansand credit cards and are staying high for student loans.
Read the full article here.
BUILDING PRODUCTS & MATERIALS
INDUSTRY UPDATE │ MAY 2017
DESPITE SHORTAGE, NEW AND EXISTING HOME SALES ARE EXPECTED TO RISE2
Construction Dive 5/19/2017
The downward move is a result of weaker-than-expected starts activity in the first quarter, as well as failure on the partof the Trump administration to get traction on its proposed tax reform and infrastructure spending agendas.
ConstructConnect said 2017's weak performance thus far relative to 2016 leaves a window for increased governmentstimulus spending. Despite uncertainty regarding the infrastructure sector, the group raised its projections for the civilengineering category from 8.0% to 8.9% for 2017.
Read the full article here.
Associated Builders & Contractors 5/11/2017
Construction input prices rose for a fifth consecutive month in April, increasing by 0.7% on a monthly basis and 4.3% ona year-over-year basis, according to analysis of U.S. Bureau of Labor Statistics data released today by AssociatedBuilders and Contractors.
Natural gas and crude petroleum experienced brisk price increases, rising by 25.1% and 15.7%, respectively. Therecent trend of falling oil prices is not fully reflected in the April data.
Read the full article here.
Professional Builder 5/19/2017
According to a forecast from the NAR, existing home sales are projected to increase 3.5%, to 5.6 million, this year and2.8%, to 5.8 million, in 2018.
New home sales are expected to increase as well, rising 10.7% this year, to 620,000 and 8.0% in 2018, to 670,000. Newhome prices are slated to rise 5.0% this year and 3.5% next year.
Harris Williams & Co. has a broad range of industry expertise, which creates powerful opportunities.Our clients benefit from our deep-sector experience, integrated industry intelligence andcollaboration across the firm, and our commitment to learning what makes them unique. For moreinformation, visit our website at www.harriswilliams.com/industries.
OUR FIRM
BUILDING PRODUCTS & MATERIALS
INDUSTRY UPDATE │ MAY 2017
11
PAGE |
HARRIS WILLIAMS & CO.
12
BUILDING PRODUCTS & MATERIALS
INDUSTRY UPDATE │ MAY 2017
DISCLOSURES
SOURCES
Harris Williams & Co. (www.harriswilliams.com) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide. The firm has deep industry knowledge, global transaction expertise, and an unwavering commitment to excellence. Harris Williams & Co. provides sell-side and acquisition advisory, restructuring advisory, board advisory, private placements, and capital markets advisory services.
Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is a private limited company incorporated under English law with its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales (registration number 7078852). Harris Williams & Co. Ltd is authorized and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.
THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS, SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS. NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF, AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF, THE SECURITIES, FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT, AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS, FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT. FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES, PLEASE CONTACT US.
The information and views contained in this report were prepared by Harris Williams & Co. (“Harris Williams”). It is not a research report, as such term is defined by applicable law and regulations, and is provided for informational purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy. The information contained herein is believed by Harris Williams to be reliable, but Harris Williams makes no representation as to the accuracy or completeness of such information. Harris Williams and/or its affiliates may be market makers or specialists in, act as advisers or lenders to, have positions in and effect transactions in securities of companies mentioned herein and also may provide, may have provided, or may seek to provide investment banking services for those companies. In addition, Harris Williams and/or its affiliates or their respective officers, directors and employees may hold long or short positions in the securities, options thereon or other related financial products of companies discussed herein. Opinions, estimates and projections in this report constitute Harris Williams’ judgment and are subject to change without notice. The financial instruments discussed in this report may not be suitable for all investors, and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives. Also, past performance is not necessarily indicative of future results. No part of this material may be copied or duplicated in any form or by any means, or redistributed, without Harris Williams’ prior written consent.