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00:19
Hi, I’m K. Schipper with the latest in hard surfaces industry news from Radio Stone Update.
00:30
Caesarstone unveiled its first-quarter financial report May 10, and the story remains one of bolstering finances in the face of weaker revenues.
The Israeli-based surfaces company reported $118.3 million in worldwide revenue for the first three months of 2024. That’s down 31 percent from the same time last year on a constant-currency basis. The news from the company’s largest market – the United States – was a hair better with revenues of $60.9 million. That decline was 19.8 percent compared with 2023 figures.
In a statement, Caesarstone CEO Yos Shiran said he felt the numbers demonstrated resiliency and adaptability when facing global economic headwinds, regulatory changes in Australia and the ongoing conflict in Israel.
“Despite our quarterly revenues falling short of our expectations, we are beginning to see the benefits of our strategic restructuring actions after aligning our production footprint and network of production business partners,” Shiran said.
Caesarstone’s continuing refinement of its business led to an increase from 1Q 2023 in gross margin of 24.5 percent and a slight reduction in loss. It also had a positive cash flow of $8.7 million driven mainly by inventory reduction.
In a conference call May 8 with Wall Street analysts, Caesarstone CFO Nahum Trost said the company has expedited sales of excess inventory in connection with the closure of its Richmond Hill, Ga., plant and in connection with future regulations in Australia.
Trost said that involved most of the higher-production cost material from Richmond Hill. The company closed the facility early in 2024 in preference to utilizing third-party manufacturers which now supply more than half of Caesarstone surfaces.
Closing the U.S. factory and a production facility in Israel will result in savings of $20 million this year. Trost said Caesarstone is looking at ways to monetize the Richmond Hill plant.
As part of its restructuring effort the company also announced that it has separated its U.S. and Canadian leadership. The move reverses the early 2019 decision to combine efforts in both countries under the name Caesarstone North America.
In reaction to Australia’s decision to ban quartz-surface fabrication, Caesarstone plans to have half of its collection consist of alternative products by July 1, when the ban becomes effective, with a full collection of compliant products available by the end of the year.
In the meantime, Caesarstone is attempting to address a new problem that wasn’t on anyone’s radar a year ago. In response to the Israel-Hamas conflict, Turkey has stopped trade with Israel until there’s an uninterrupted and sufficient flow of humanitarian aid to Gaza.
Turkey is one of the main suppliers of processed quartz used in surface production. Trost said the company has been sourcing raw materials from Turkey for several years and is currently seeking alternative sources for it. Turkey will allow existing import-export contracts to continue for three more months, although goods will have to be sent through a third country.
03:57
Marmomac’s slogan is “We Speak Stone,” and last week they were speaking it in Chicago.
The producer of the Marmomac international events held a trade mission in the Windy City made up of a delegation of 12 companies in the natural stone sector to talk with architecture and design studios.
The program of events was developed by Veronafiere-Marmomac in collaboration with the Italian-American Chamber of Commerce of the Midwest. U.S. participants included 30 of the most-renowned firms in Chicago. The companies joining Marmomac from Europe were heavily weighted towards Italian firms – including Antolini Luigi & C – but also included two Portuguese suppliers.
Raul Barbieri, Veronafiere sales director, says the three-day event confirms the landmark status of Marmomac for the promotion of natural stone materials to leading international markets. The United States is the top outlet market for Italian slabs and processed materials.
By contacting architects, interior designers and contractors, its mission’s goal was to find new opportunities for stone material in large construction projects and the luxury sector. Says Barbieri, “We opted for Chicago because of its global reputation as a center of excellence for modern architecture and design.”
The trade mission is also seen as another step in the run-up to Marmomac 2024, which is scheduled for September 24-27 at the Verona Exhibition Centre.
06:37
EMERSON SCHWARTZKOPF: This is Emerson Schwartzkopf. For the first three months of this year, the total customs value of U.S. hard-surface imports topped $1 billion … barely.
From January through March, dimensional stone imports totaled one billion, 75 thousand – that’s 1.075 billion — dollars. That’s an increase of 2.1% from the same time last year. The overall yearly U.S. inflation rate from March-to-March was 3.8%, however, turning that import-value increase into a small – as in very small – decline.
The big changes came with first-quarter shipment volume, topped by quartz-surface’s 47.5 million ft², a 22.9% increase from the same time last year.
Much of that jump came from India, with its 15.7 million ft² square feet showing a 78.7% leap from first-quarter 2023. That jump, though, is driven mainly by India’s decline in quartz-surface exports in the fourth quarter of 2022 and the first part of 2023 during the controversial tariff-rate review on anti-dumping penalties.
Porcelain imports during this year’s first quarter, meanwhile, tallied 254.2 million ft², a decline of 5.3% in volume from 2023. Sector leader India saw shipments to the United States go down 3.8%, while Italy’s exports wavered by less than one%.
However, total losses in volume from the top five porcelain exporting countries – India, Italy, Spain, Turkey and Brazil – came to 12.1 million ft² from the first quarter of 2023. And farther down the list, Peru went from 4.7 million ft² last year to 879 thousand ft² this year … a drop of 81.5%.
Total natural dimensional stone imports for first quarter 2024 came to 550 thousand metric tons, or 5.7% below last year. Among the major sectors, granite imports dropped 12.4% by volume, while marble dipped by 2% and other stone (including quartzite) rose by 4.1%.
You can see all the number with U.S. hard-surface imports every month with our e-magazine. Hard Surface Report. It’s free and available now at hardsurfacereport.com.
09:36
BACA Systems announces its Digital Fabrication Seminar series, which will begin June 13 at All Granite & Marble in Charlton, Mass.
The seminar series focuses on hands-on experience, insights into digital fabrication and machine demonstrations with an emphasis on enhancing profitability and staying ahead of the curve.
With machine demonstrations and a panel of experts who will discuss the latest techniques and equipment shaping the fabricators’ landscape, the event will showcase BACA Systems’ technology, including the Robo SawJet, Miter X, and the next generation 5-axes CNC saw, the Versa 5.
Tony Russo, vice president of sales for BACA Systems, says. “We are committed to ensuring that every fabricator has the opportunity to explore the latest advancements in digital fabrication.”
Other Digital Fabrication Seminars are scheduled for:
● June 20, at Trademark Universal Stone, Louisville, Ky.;
● August 15, hosted by Accent Countertops, Murray, Utah;
● August 22, at Zsolt Granite Corp., Longwood, Fla.
For more information and to register, go to www.bacasystems.com/events/
10:55
And now, here’s Jim Hieb, CEO of the Natural Stone Institute
JIM HIEB: Preventing silicosis is front of mind for all of us in the stone industry right now. That’s why the Natural Stone Institute has introduced the Silica and Slab Safety Certificate, an online training tool for fabricators, installers, and other stone professionals. The certificate covers silica safety, safe slab handling, and creating a safety program for employees and the natural stone industry. Find it online at natural stone institute.org/safety certificate. This program was underwritten by the Natural Stone Foundation.
You may also be interested in attending an in-person version of this training offered by one of our distribution or supplier members. Look for announcements for a workshop coming to a city near you, whether online or in person. This training is a great resource for stone professionals.
K. SCHIPPER: In other news around the industry….
12:06
Reid Kubesh of Coldspring is the newest member of the Natural Stone Institute board of directors. Kubesh was appointed to fill a vacancy left by Alexandra Niedbalski who resigned after leaving the industry. Kubesh will serve until 2027.
Kubesh is currently vice president of sales for the Cold Spring, Minn.-based quarrier where he leads sales for dimension block in domestic and international markets, slab sales for the countertop market in the Midwest, and landscape products.
During his time with Coldspring, Kubesh has also helped provide donations to support the Natural Stone Institute’s auction. He also participated in the first Natural Stone Pavilion and Women in Stone Amazing Race during StonExpo 2020, as well as joining other association events and study tours.
He also serves as the steering committee chair for the North American Quarry Advocacy Group. Kubesh noted he has worked with many of the other board members in his role with the quarry group, and he said, “This position will allow the quarrier sector even better representation in the future.”
13:13
The National Tile Contractors Association – NTCA — has announced the names of the 2024 winners of the Tom Ade Scholarships.
Established nine years ago through the generosity of NTCA contractor member Tom Ade, the scholarship fund has become a cornerstone of NTCA’s mission to foster the next generation of leaders.
Currently sponsored by Dal-Tile and LATICRETE, the program provides each winner with $5,000 to pursue academic and career ambitions.
This year’s recipients are:
●London Sima, who plans on attending the University of Nebraska at Lincoln to pursue a medical career;
● Isabella “Bella” Welch, who will study business at Ferris State University in Michigan; and
● Paityn Bruce, who plans on attending Nichols State University in Louisiana to play Division One soccer while majoring in business marketing and sales.
14:09
Confindustria Ceramica — the Association of Italian Ceramics — has named THORNTREE as its North American Distributor of the Year. The award was presented during a special ceremony at Coverings 2024 last month.
The annual award honors an exemplary North American tile distributor, and THORNTREE was selected based on its exceptional service and commitment to promoting Italian ceramics in the marketplace.
The award was presented to THORNTREE President Stuart Rae during a ceremony at the Ceramics of Italy booth at Coverings.
Family owned and operated since its founding in 1980, THORNTREE has two locations in Houston, a 4,000 ft2 office and showroom and a 3,500 ft2 design center, as well as a showroom in the Dallas Design District.
The company is a leading supplier of tile and stone in Texas, with products from numerous Ceramics of Italy brands as part of its business mix.
15:10
Remember, our electronic newsletter, Slab & Sheet, comes out on alternate Wednesdays. For a transcript of this broadcast, go to www.radiostoneupdate.com. For Radio Stone Update, I’m K. Schipper and we’ll see you here again soon.
