Ash Grove Cement Company 2008 Annual Report to Employees
Transcription
Ash Grove Cement Company 2008 Annual Report to Employees
Ash Grove Cement Company 2008 Annual Report to Employees Celebrating a Century of Cement Production in Chanute, Kansas 2 9 10 13 17 2 Celebrating a Century of Cement Production in Chanute 4 Message from the Leadership 7 Summaries: Sales-Capital Expenditures 8 Operations-Safety 9 Operations-Sustainable Development/AGem 10 Operations-Facility Achievements/ MEP 13 Ash Grove Family of Companies 17 Ash Grove Customer Service 18 Building a Strong Future 18 Ash Grove Charitable Foundation 19 Ash Grove Cement Company 2008 Scholarship Recipients 20 Locations 21 Facilities 22 Ash Grove Board of Directors and Company Officers 23 Corporate Contacts 1 Celebrating a Century of Cement Production in Chanute In 2008 Ash Grove Cement Company celebrated 100 years of producing cement in its Chanute, Kan., facility, where production began July 28, 1908. The Ash Grove Lime and Portland Cement Company chose Chanute over several sites because of its abundant raw materials, dependable labor force, plentiful natural gas supply and availability of rail transportation. Cement from the company’s first plant was originally shipped in barrels, and the original plant’s annual production capacity was the equivalent of 120,000 tons of cement per year. The company met demand challenges by expanding the facility and implementing new technologies. During the 1960s the plant underwent a modernization to meet growing demand, which increased its capacity to 500,000 tons of cement per year. Celebrating Chanute 2 The most recent major construction project was completed in 2001, and this state-ofthe-art cement plant operation has the ability to produce 1.6 million tons of high quality cement for the company’s valued customers each year. The company also operates eight other plants in the Midwest and West. Other significant 2008 Ash Grove Cement Company milestones, acquisitions and news are detailed on the following pages. The Chanute, Kan., cement plant celebrated 100 years of production with an Open House in October 2008. Message from the Leadership Since its founding in 1882 Ash Grove has weathered financial panics, epidemics, the Great Depression, world wars and numerous recessions. The basic management philosophy of maintaining a conservative balance sheet while patiently building shareholder equity has served the company well and will continue to be a successful strategy in the coming years. Led by the United States, the world economy is now more than a year into the sharpest economic decline since the Depression of the early 1930s. While Ash Grove’s earnings opportunities are severely diminished in the short term as heavy building materials demand continues to decline, our employees and assets are the best in the industry, and Ash Grove is well positioned for the eventual economic upturn. Historically Ash Grove has made acquisitions and expansions during the inevitable down side of our business cycles. In 2008 Ash Grove continued the expansion of the Foreman, Ark., cement plant with a scheduled start-up of October 2009 for the highly efficient 1.7 million ton per year kiln system. In summer 2008 Ash Grove closed on the acquisition of Holliday Sand & Gravel Company. This company brings to Ash Grove a strong market share in fine aggregates in the Kansas City metro area as well as in Tulsa, Okla., and St. Joseph, Mo. The fine aggregates fit strategically with Ash Grove’s current product offerings in the central United States. In summer 2008 Ash Grove also took an equity position in Eagle Materials Inc. (NYSE: EXP) and currently holds approximately six percent of Eagle’s outstanding shares. Headquartered in Dallas, Texas, Eagle produces cement in Texas, Wyoming, Nevada and Illinois and owns major production facilities in gypsum wallboard. This is currently a long-term investment for Ash Grove, deploying capital back into the heavy building materials industry at a historically attractive value. With the sharp decline in cement demand at the end of 2008, Ash Grove was forced to make the difficult decision to indefinitely suspend operation of the kiln systems at our Inkom, Idaho, cement plant effective Dec. 31, 2008. This entailed the lay off of loyal and talented employees who admirably operated one of the oldest and smallest cement plants in the country, but the company could no longer keep the facility cost competitive in today’s challenging markets. Ash Grove will maintain its Idaho market share with clinker shipped from our highly efficient Durkee, Ore., plant to be ground at Inkom and distributed through our existing Idaho facilities. For the second year in a row the Leamington, Utah, cement plant earned the L.T. Sunderland Safety Award, leading the company once again in the important effort to reinforce the safety culture in each of our facilities’ daily operations. Looking ahead to 2009 we see another challenging year for the cement industry with continued significant declining demand. Ash Grove will again be severely impacted by this negative economic trend and will adopt operating strategies to maximize plant efficiencies while implementing strict cost and inventory controls throughout the company. Ash Grove is fortunate to employ steady, talented and deeply experienced employees throughout the company. Their leadership will enable Ash Grove to outperform our industry peers as we weather this economic downturn and emerge in a position to look for growth opportunities in our core businesses. Charlie Sunderland Chairman of the Board Kent Sunderland Vice Chairman of the Board and Secretary Chuck Wiedenhoft President 5 Message from the Leadership Ash Grove cement shipments declined in 2008 to 8,214,000 tons, a 10.3 percent decline from 2007 shipment totals. The Portland Cement Association estimates that cement shipments declined by 15.3 percent on a national basis during 2008. The Chanute, Kan., cement plant’s limestone storage dome. net sales 2004 2005 2006 2007 2008 2004 1066 1187 1273 1190 NET SALES IN MILLIONS 2006 2007 2008 Financial Summaries 150 125 66 337 CAPITAL EXPENDITURES IN MILLIONS 921 119 capex 2005 7 Operations The expansion that will rebuild the existing Foreman, Ark., facility continued. Since the October 2007 groundbreaking, Teton Industrial Construction has completed about 80 percent of grading and drainage work and about 70 percent of concrete work. Steel work was 50 percent complete at year end. FL Smidth continues to provide construction management services and supply equipment. The project is scheduled to be completed by the fourth quarter of 2009 despite the negative effects of two hurricanes in 2008. The expansion will boost Foreman’s annual production capacity to 1.7 million tons of cement from 1.0 million tons. Ash Grove Safety In recognition of safety achievements in 2008, the Leamington, Utah, plant won the Ash Grove L.T. Sunderland Safety Excellence Award for the second consecutive year. This prestigious award recognizes overall safety and excellence. Only one plant earns the award each year, and it is presented at the Ash Grove Board of Directors’ meeting in February. Operations - Safety 8 The Portland Cement Association (PCA), the industry’s trade association, sponsors an annual Innovations in Safety photo contest. For 2008, Ash Grove won four of the nine categories. Ash Grove plants’ winning entries were: Leamington, Utah, (baghouse tools); Louisville, Neb., (rail car vibrator hoist); Durkee, Ore., (haul truck ladder access); and Midlothian, Texas, (mill rod removal system). The President’s Safety Leadership Award results acknowledged the Chanute, Foreman, Inkom, Leamington and Rivergate facilities with the Gold Award. The Louisville, Midlothian and Montana City plants and the Houston and Portland import terminals earned the Silver Award. The Seattle plant earned the Bronze recognition. The Leamington plant was announced as the 2008 L.T. Sunderland Safety Excellence Award winner at the Board of Director’s meeting in February 2009. L-R: Fran Streitman, Vice President - Manufacturing and Environmental Affairs; Gary Wright, Operations Manager - Rivergate Grinding plant (Finalist); Ken Ware, Maintenance Manager - Leamington plant; Ron Smith, Plant Manager - Inkom plant (Finalist); and Chuck Wiedenhoft, President and Chief Operating Officer. The Seattle, Wash., plant held an AGem giveaway event for employees. AGem recyclable grocery bags and cups were incentives for employees to participate in the EPA’s “Change a Light, Change the World” program, which requires a pledge to replace at least one incandescent bulb or fixture at home with one that has earned the Energy Star label. Sustainable Development Ash Grove is committed to reducing its thermal energy use by 17 percent per ton of clinker and electrical use by 10 percent per ton of cement produced by 2012. The company will work to maintain its position as an industry leader in its use of alternative fuels and raw material substitution. A copy of the 2008 Ash Grove Sustainability Report is available online at www.ashgrove.com. The 2009 report update will be posted online at the same Web site. Ash Grove Energy Management (AGem) The Ash Grove Energy Management initiative was introduced in 2008, and it is an aggressive energy reduction process. The program also focuses on environmental goals. The financial results of the program by year end were savings exceeding $4 million. The AGem initiative: • reduces Ash Grove’s carbon footprint • reduces emissions • reduces mobile equipment run times • improves lighting efficiency • boosts employee energy consumption awareness process air infiltration • reclaims waste heat • encourages employees to shut off unused/idling equipment • eliminates 9 Operations - Sustainable Development / AGem Ash Grove Cement participates in the Cement Sustainability Initiative (CSI) as part of the World Business Council for Sustainable Development. Through its participation in the CSI, the company issued its inaugural “Sustainability Report” in 2008. The report contains a comprehensive overview of the company’s commitment to environmental stewardship, social responsibility and economic prosperity. Ash Grove is committed to reduce emissions and set emission reduction targets for carbon dioxide (CO2), nitrogen oxide (NOx), dust and sulfur oxides (SOx). Maintenance Excellence Process (MEP) The Maintenance Excellence Process continues to provide plant support in reducing costs, improving reliability and establishing a systems approach to caring for plant assets. The systems approach requires plants to consistently identify, plan, schedule, execute and document work with all personnel as stakeholders in order to achieve the best in class status among PCA member companies choosing to participate in financial benchmarking analyses. Tracy D. Weber, maintenance man, services equipment at the Portland Landfill Gas pumping station. Facility Achievements Facility achievements in 2008 include: Midwest Region Operations - MEP/ Achievements 10 Chanute, Kan., Cement Plant • Celebrated 100 years of production with a community-wide celebration that drew hundreds of Ash Grove employees and retirees, community leaders and citizens to a festive outdoor barbecue picnic. • For the third consecutive year, earned U.S. Environmental Protection Agency’s (EPA) prestigious Energy Star designation, which is the national symbol for protecting the environment through superior energy performance. Foreman, Ark., Cement Plant • Celebrated 50 years of production with a community celebration. Welcomed Ash Grove employees, retirees, community leaders and citizens to enjoy a fall picnic. • Sold more than one million tons of cement for the fourth consecutive year. Louisville, Neb., Cement Plant • Began construction of a $3.2 million new office building to house offices, a lunchroom and a locker room. The building is designed to meet U.S. EPA Energy Star requirements. Completion is scheduled for mid-2009. • Completed a $5.1 million stripping project at the Weeping Water Quarry to expose reserves. Photos opposite page: Left: Arkansas state Sen. Barbara Horn and retiree Charles Harrison visit during the Foreman plant’s 50th Anniversary event. Middle: Retirees who began work at the plant in 1958 gathered at Foreman’s 50th Anniversary Celebration. L-R: Thomas R. Stuart, Foster Altenbaumer, Carlton Nevels, Odean Cleghorn, Bill Doss Self, Noble Southerland, Charles Harrison, Charles “Sonny” Cobb, Thomas “Sonny” Williams and Paul Jones. Right: Human Resources/Safety Manager Clint Nelson and his daughter, Kenzey, enjoy the celebration. Facility Achievements continued Midlothian, Texas, Cement Plant • Successfully installed Selective Non-Catalytic Reduction (SNCR) technology on all three kilns, which resulted in a nitrogen oxide (NOx) emission rate of 3.4 tons per day, which is a full ton below the Texas Commission on Environmental Quality-mandated ozone season limit for 2009. • Earned the North Texas Clean Air Coalition’s gold “Working for Clean Air Employer of the Year” award for companies with fewer than 500 employees. Ash Grove is the first Texas cement manufacturer to earn this recognition in the five-year history of the program. West Region Durkee, Ore., Cement Plant • Signed a Mutual Agreement and Order (MAO) with the Oregon Department of Environmental Quality to install a mercury reduction system that will be operational by July 2010. The equipment is expected to reduce mercury emissions by at least 75 percent when it is fully operational. Advisory Committee was formed to build and maintain Ash Grove’s ties to key community leaders. Its first meeting was held in August; the second meeting featured a tour of the plant and a visit from U.S. Rep. Greg Walden (R-Ore.) in October. Inkom, Idaho, Cement Plant • Announced that the Inkom plant would operate as a grinding and load out facility effective Dec. 31, 2008. • Worked with affected employees to offer job search assistance. 11 Operations - Achievements • Community Facility Achievements continued Leamington, Utah, Cement Plant • Cost per equivalent ton of cement produced was the lowest among all Ash Grove plants. • Community Advisory Committee was formed to build and maintain Ash Grove’s ties to key community leaders. Montana City, Mont., Cement Plant • Successfully negotiated a five-year labor contract, which passed on the first vote. • Formed Operations - Achievements 12 a Community Advisory Committee to build and maintain Ash Grove’s ties to key community leaders. The Durkee plant’s Community Advisory Committee was formed in 2008. The committee’s October meeting featured a visit from U.S. Rep. Greg Walden (R-Ore.) (center) and included a tour of the plant. Seattle, Wash., Cement Plant • For the third consecutive year, earned U.S. EPA’s prestigious Energy Star designation, which is the national symbol for protecting the environment through superior energy performance. • Installed a HoverGlide™ conveyor to significantly reduce spillage and enhance the clinker conveying system’s cleanup. Portland, Ore., Calcium Carbonate Grinding Plant • Demolished calcimatic lime kilns without incident. Import Terminals Houston, Texas, Cement Import Terminals • Shipped 1.340 million short tons of cement; unloaded 1.333 short tons of cement, which is down by nearly one-third from a 2007 record level as a result of the declining state of the U.S. economy and construction. • Despite Houston taking its first direct hit from a major hurricane in more than 20 years, the terminals sustained only minor damage from Hurricane Ike. Portland, Ore., Cement Import Terminal • Unloaded 110,000 short tons of cement. • Installed a new pipe conveyor system in preparation for commissioning in early 2009. Ash Grove Family of Companies Ash Grove Aggregates Ash Grove Aggregates experienced its most challenging year in 2008. Profitability fell short of expectations. Competitive forces suppressed pricing, and higher operating costs coupled with record fuel costs continue to negatively affect profit margins. Market conditions dictated the closure of two Kansas locations, and expansion was limited to the addition of three million tons of limestone reserves through existing leases. Sixty-one acres were reclaimed and released in 2008. After 38 years of Ash Grove service, including more than 30 years leading the Aggregate group, Mike Lutz retired in 2008. The Aggregate management group was consolidated and streamlined into the Ash Grove Materials group in preparation for 2009. Jeff Burton now leads the group. Ash Grove Packaging Ash Grove Packaging Group (AGP), comprised of Precision Packaging Incorporated and Materials Packaging companies, fell short of its budgeted revenues in 2008. As residential markets continued to fall in 2008, AGP also experienced a sharp decline in demand for commercial mortar and consumer products. AGP continued to make investments for future growth throughout 2008. These ongoing investments will provide increased production capacity that will enable us to increase production as the construction industry regains strength. The Materials Packaging Salt Lake City plant rebuilt both rotary kiln Ash Grove Packaging continued to make investments for future growth throughout 2008. These ongoing investments will provide increased production capacity that will enable us to increase production as the construction industry regains strength. 13 Family of Companies Johnson County Aggregates in Olathe, Kan., experienced an even more difficult year. The housing and commercial development markets collapse resulted in a 31 percent reduction in tons sold and caused a shift in production to a product mix more appropriately suited to the current market conditions. Forecasts for 2009 reflect a continued depressed housing market, and stagnated sales will create the need for cost containment and a focus on premium products, such as ready mix concrete and asphalt stone. Holliday Sand & Gravel’s Randolph, Mo., plant. Ash Grove Family of Companies continued Family of Companies 14 dryer operations, and new pallet stretch wrapping machines were installed in Harrisonville, Mo., Fort Smith and North Little Rock, Ark., and Jackson, Miss. In addition, the Harrisonville facility completed installing a state-of-the-art, energy efficient Ventilex fluid-bed dryer and a new sanded products production line. Our first robotic bag stacker was installed in North Little Rock. The economic downturn will produce new challenges in 2009, but AGP looks forward to meeting and overcoming the challenges ahead. AGP remains committed to working safely and in compliance with environmental laws. We also are committed to our vision of becoming and remaining the premier cement products packager in the U.S. Ash Grove Resources, L.L.C . Ash Grove Resources, L.L.C. of Topeka, Kan., completed its fourth year of business in 2008, and its products were in demand. Ash Grove Resources markets cement kiln dust (CKD) as Ash Grove Durabase® produced at Ash Grove cement plants in Chanute, Kan., Foreman, Ark., and Midlothian, Texas. This material is marketed as a soil stabilization product for constructing large interstate highways, local road projects and commercial parking lots in Arkansas, Kansas, Nebraska, Oklahoma and Texas. Ash Grove Resources, L.L.C. also markets Class C Fly Ash, which is used as a soil stabilization product in the same applications as our Ash Grove Durabase® as well as a material in concrete production. Holliday Sand & Gravel In August 2008, Ash Grove Cement Company purchased Holliday Sand & Gravel from its parent company, List & Clark. Holliday exceeded our expectations for the five operating months in 2008. Holliday Sand & Gravel has a 98 percent mar- ket share in the greater Kansas City area and a 75 percent market share in the Tulsa, Okla., area. Even with difficult economic times ahead of us in 2009, our expectations for Holliday’s profitability remain high. Kansas City Ready Mix Group In 2008, results were mixed for the Kansas City Ready Mix Group, comprised of Fordyce Concrete and Century Concrete. The combined companies fell short of profitability expectations. Fordyce Concrete had another profitable year. In 2008, yardage was up four percent from 2007. Century Concrete had an extremely tough year. Yardage volume was down 14 percent due to the adverse residential market conditions. Moving forward in 2009, Century will focus on targeting the commercial market to help increase yardage and earnings. Century decided in October to temporarily close the Belton and Harrisonville plants in Missouri to help reduce costs in 2009. During the year, the company continued investment in projects to improve employee safety, efficiency, customer service and product quality. In Glenwood, Iowa, the aging concrete plant acquired with Cohron in 2002 is being replaced with a dry-batch plant with increased production capacity. This new facility, scheduled for completion in spring 2009, will allow Cohron to serve this growing market and produce a better quality product. Lyman-Richey Sand & Gravel continued with the relocation of the Cullom, Neb., sand plant from a depleted site to a deposit located two miles further west. In conjunction with the relocation, the diesel dredge has been replaced with a more efficient electric dredge. Central Sand and Gravel Company is in the process of relocating its Genoa, Neb., plant from a depleted sand and gravel deposit site acquired in 1989 to another sand and gravel deposit located one mile north of the existing site. The move will be completed in 2009, and site configuration and plant improvements will increase productivity and save energy. Sales in 2009 are forecasted to decrease from 2008 levels as all markets continue to weaken. These reductions in sales have ranged from modest to substantial, depending on each operating company’s industry markets and geographic location. 15 Family of Companies Lyman-Richey Corporation Sales for 2008 decreased from 2007 with the continued slowdown in the housing market affecting both home construction and the related residential street paving business. The declines in the housing and commercial markets were partially offset by increases in highway, bridge and agricultural construction. Ash Grove Family of Companies continued Siouxland Concrete Company Siouxland Concrete Co. (Siouxland), a wholly owned subsidiary of Ash Grove Cement Company, supplies ready-mix concrete and pre-cast concrete products to the tri-state area of Nebraska, Iowa and South Dakota. Sales decreased in 2008 after excluding the sales revenue from the recently acquired Standard Companies. The decline in housing construction and absence of large paving projects delivered in 2007 contributed to this decline. Siouxland purchased Standard Ready Mix Concrete and its affiliated concrete companies: Maurice Concrete Supply and Ludey’s Ready Mix in June 2008. These three new locations enabled Siouxland to nearly double its market area and sales volume with locations in Sioux City and Maurice, Iowa, and Vermillion, S.D. Siouxland’s ready mix truck fleet nearly doubled, and approximately 40 experienced employees joined the Ash Grove family. Permanent Paving, Inc. In its fifteenth year of operation, Permanent Paving, Inc., (PPI) enjoyed a record year in 2008. Both sales and profit exceeded expectations. PPI experienced no accidents in 2008. Family of Companies 16 Three of Permanent Paving’s high profile projects included: • Paving two miles of the Overland Park section of Nall Avenue from 151st Street to 159th Street, which earned PPI the American Concrete Paving Association’s Award of Excellence for Street Construction; • Custer Hill Bed Down Project at Fort Riley, Kan., which is the area that U.S. troops go to first to safely unload, store and secure ammunition and firearms when they return to the U.S. from war or training; • Vehicle Maintenance Facility at Fort Riley, Kan., which is a large parking area used to stage U.S. military vehicles. Permanent Paving continues its community involvement. At Truman Medical Center West in Kansas City, Mo., the company donated the hospital’s monument slab. For the Temporary Lodging for Children (TLC), Permanent Paving donated repairs to the main parking area and parking at its emergency shelter. TLC is an Olathe, Kan., non-profit organization that serves children from Johnson, Miami and Leavenworth counties in Kansas. Permanent Paving, Inc. paved two miles of Nall Avenue in Overland Park, Kan. The project received the American Concrete Paving Association’s Award of Excellence for Street Construction. Customer Service Outstanding customer service is an Ash Grove tradition. One of our competitive advantages is the company’s ability to offer its customers technical analyses of samples. In 2008, the Ash Grove Technical Center analyzed nearly 2,000 samples and issued 435 reports. The Technical Center staff provided valuable support for Ash Grove Cement Company plants. The staff ’s efforts involved clinker and cement analyses and raw material exploration sample analyses. Customer Service 17 Building a Strong Future Employees are one of our most valuable company resources. Their success and development underpins Ash Grove’s success. Developing strong leadership in the organization has and will continue to set Ash Grove apart from others in the industry. In 2008, Ash Grove continued to build a strong foundation by encouraging employees to focus on both personal and professional development. Through these efforts, employees, managers and leaders have demonstrated a clear commitment to their personal growth and our future. But this is just the start. In 2008, reorganization of the Training and Development department established the company’s long-term commitment to growing our own talent. In the future, employees can expect new and different opportunities to assure that personal and professional growth occurs. Ash Grove Charitable Foundation Building A Strong Future / Charitable Foundation 18 Exercising our corporate citizenship as a community builder in the markets we serve is one of Ash Grove’s management priorities. The Ash Grove Charitable Foundation makes grants annually to support the work of charitable organizations possessing tax exempt status under section 501(c)(3) of the Internal Revenue Code. The foundation prefers to make grants for capital and special projects, with building construction, renovation and restoration receiving primary consideration. In 2008 the Ash Grove Charitable Foundation contributed nearly $500,000 to projects throughout the Ash Grove Cement Company’s regional markets. Projects receiving support in 2008 included: The Ash Grove Charitable Foundation’s areas of interest for giving include: • higher education • environmental initiatives • youth-serving agencies • civic projects • Beautification of Kaw Point Park in Kansas City, Kan.; • Hospital improvements in Sandpoint, Idaho; • Training Center for the blind in Las Vegas, Nev. Ash Grove Cement Company 2008 Scholarship Recipients Ash Grove Cement Company established the Ash Grove Scholarship Program in 2005. It awards up to five $2,000 renewable scholarships annually for dependents of the company and its wholly-owned subsidiaries. Ash Grove’s financial commitment to fund these scholarships is a significant employee benefit to the recipient families. The information below highlights the educational achievements and career plans of our 2008 scholarship recipients. Heather Finch is the daughter of Lori and Alan Finch, production manager at the Durkee plant. She graduated from Fruitland High School in Idaho, where she was a member of the National Honor Society and senior class vice president. Heather began her studies in education at Brigham Young University in fall 2008. Finch Kathryn Layne Morgan is the daughter of Michelle and Eddie Morgan, district sales manager for the Southern Region. She graduated from the C. E. Byrd High School in Shreveport, La., where she ran cross country and was a varsity cheerleader. She also was a member of the National Honor Society and president of the Nature Club. She began studying forensic chemistry at the University of Mississippi in fall 2008. Kaitlyn Ugelstad is the daughter of Kimberly McDonald and Donald Ugelstad, maintenance manager at the Seattle plant. Kaitlyn graduated from the Annie Wright School in Tacoma, Wash., where she served as the captain of the varsity volleyball team, which qualified for state two years in a row. She also was the vice president of the Technology Student Association. Kaitlyn began her studies in engineering at Washington State University-Pullman in fall 2008. Ugelstad Eric Post is the son of Linda and Stan Post, plant engineer at the Louisville plant. Eric graduated from the SyracuseDunbar-Avoca High School in Syracuse, Neb., where he was a member of the National Honor Society, vice president of the local FFA chapter and a 2008 National FFA Risk Management Essay Contest winner. Eric began his pre-veterinary medicine studies at the University of Nebraska-Lincoln in fall 2008. Post Kelsey Thompson is the daughter of Tammy and James L. Thompson, maintenance manager at the Inkom plant. Kelsey graduated from Marsh Valley High School in Arimo, Idaho, where she served as a senior class student council representative, member of the Honor Society and member of the varsity basketball and softball teams. Kelsey began studying dental hygiene at Idaho State University in Pocatello in fall 2008. Thompson Scholarship Recipients 19 Morgan Locations Locations 20 Facilities Midwest Division: Overland Park, Kan. Sales Offices: Omaha, Neb.; Overland Park, Kan.; Little Rock, Ark. Cement Plants: Louisville, Neb.; Chanute, Kan.; Foreman, Ark. Cement Terminals: Alexandria, La.; Cozad, Neb.; Des Moines, Iowa; Hawarden, Iowa; Henderson, Colo.; Kansas City, Kan.; Memphis, Tenn.; North Little Rock, Ark.; Oklahoma City, Okla.; Shreveport, La.; Van Buren, Ark. Ash Grove Technical Center: Overland Park, Kan. Ash Grove Cement Company Texas Division Midlothian, Texas Sales Offices: Houston, Texas; Midlothian, Texas Cement Plant: Midlothian, Texas Cement Terminal: Denton, Texas Ash Grove Cement Company West Division Portland, Ore. Sales Offices: Bellevue, Wash.; Boise, Idaho; Portland, Ore.; Salt Lake City, Utah Cement Plants: Durkee, Ore.; Inkom, Idaho; Montana City, Mont.; Leamington, Utah; Seattle, Wash. Cement Terminals: Elko, Nev.; Idaho Falls, Idaho; Kennewick, Wash.; Meridian, Idaho; Murray, Utah; North Las Vegas, Nev.; Portland, Ore.; Salt Lake City, Utah; Spokane, Wash. Import Terminal: Portland, Ore. Calcium Carbonate Grinding Plant: Portland, Ore. Quarry: Texada Island, B.C. Ash Grove Cement Company Subsidiaries Ash Grove Materials Corporation: Overland Park, Kan. Ash Grove Aggregates: Butler, Mo. Century Concrete: Belton, Mo.; Edwardsville, Kan.; Harrisonville, Mo.; Kansas City, Mo.; Lee’s Summit, Mo.; Martin City, Mo.; Olathe, Kan. Fordyce Concrete Co.: Kansas City, Kan.; Kansas City, Mo. Holliday Sand & Gravel Company: Lenexa, Kan. Materials Packaging: Harrisonville, Mo.; Fremont, Neb.; Memphis, Tenn.; Salt Lake City, Utah Material Transport Co.: Overland Park, Kan. Permanent Paving: Overland Park, Kan. Precision Packaging: North Little Rock, Ark.; Jackson, Miss.; Ft. Smith, Ark. Ash Grove Resources, LLC (joint venture; 50% Ash Grove) Topeka, Kan. Concrete Company of Springfield (60% Ash Grove) Springfield, Mo. Houston Cement Company (65% Ash Grove): Houston, Texas Import Terminal: Houston, Texas Lyman-Richey Corporation: Omaha, Neb. Lyman-Richey Sand & Gravel Co. Ready Mixed Concrete Co. Central Sand and Gravel Co. Gerhold Concrete Co. Shamrock Concrete Co. Plattsmouth Ready-Mixed Co. Cohron Ready Mix Siouxland Concrete Co.: South Sioux City, Neb. 21 Facilities Ash Grove Cement Company Ash Grove Cement Company Board of Directors JAMES P. SUNDERLAND Honorary Chairman of the Board Ash Grove Cement Company CHARLES T. SUNDERLAND Chairman of the Board Ash Grove Cement Company JOHN W. WEBSTER President John R. Webster Company Omaha, Nebraska KENTON W. SUNDERLAND Vice Chairman of the Board and Secretary Ash Grove Cement Company JOHN F. WOODFILL Vice President - Finance Ash Grove Cement Company GEORGE M. WELLS Vice Chairman of the Board - Strategic Relations Ash Grove Cement Company F. LYNN MARKEL Retired, Executive Vice President and Chief Financial Officer Koch Industries, Inc. CHARLES T. WIEDENHOFT President Ash Grove Cement Company Front Row, L-R: Chuck Wiedenhoft, Charlie Sunderland and Kent Sunderland. Middle Row, L-R: John Woodfill, John Webster, James Sunderland and Lynn Markel. Back Row, L-R: George Wells and Chuck Larson. 22 Board of Directors / Company Officers CHARLES V. LARSON Private Investor Ash Grove Cement Company Officers CHARLES T. SUNDERLAND Chairman of the Board KENT W. SUNDERLAND Vice Chairman of the Board and Secretary CHARLES T. WIEDENHOFT President EILEEN FLINK Vice President and General Counsel JOHN F. WOODFILL Vice President - Finance FRAN STREITMAN Vice President - Manufacturing and Environmental Affairs KENNETH J. RONE Vice President - Manufacturing Services, West Division EDWIN S. PIERCE Vice President - Manufacturing, Midwest Division MICHAEL J. HRIZUK Vice President - Manufacturing, West Division DEWEY C. FORE Vice President - Sales, Midwest Division DAVID H. BAKER Vice President - Sales, West Division JAMES M. GATENS Vice President - Sales, Texas Division DAVID W. EZELL Vice President - Human Resources Ash Grove Cement Company Corporate Contacts Ash Grove Cement Company Ash Grove Cement Company Subsidiaries Executive Charlie Sunderland, Chairman of the Board Kent Sunderland, Vice Chairman & Secretary Charles Wiedenhoft, President-COO George Wells, Vice Chairman, Strategic Relationships Ash Grove Aggregates, Inc. Highway 52 West • Butler, Mo. 64730 660-679-4128 • www.ashgroveagg.com Allan Emby, President - Aggregates & Ready Mix Communications & Public Affairs Jacqueline K. Clark, APR, Director of Communications and Public Affairs Environmental Affairs Fran Streitman, Vice President-Manufacturing and Environmental Affairs Curtis Lesslie, Director of Environmental Affairs Steve Minshall, Corporate Health & Safety Director Human Resources David Ezell, Vice President - Human Resources Deanna Cauley, Director of Training & Employee Development Information Systems Bill Hicks, Director of Information Technology Legal/Risk Eileen Flink, Vice President and General Counsel Gary Church, Assistant Secretary & Assistant General Counsel Steve Ryan, Assistant Secretary & Assistant General Counsel Bob Dabler, Risk Manager Manufacturing Michael Hrizuk, Vice President-Manufacturing, West Division Ed Pierce, Vice President-Manufacturing, Midwest Division Ken Rone, Vice President-Corporate Maintenance, West Division Fran Streitman, Vice President-Manufacturing and Environmental Affairs Ron Vidergar, Director of Process Engineering Gregory S. Barger, Technical Center Director Marketing and Sales David Baker, Vice President - Sales, Western Division Dewey C. Fore, Vice President - Sales, Midwest Division James M. Gatens, Vice President - Sales, Texas Division Purchasing and Energy Policy Gene Brieck, Director of Purchasing Andy Lippert, Corporate Energy Director Ash Grove Resources, LLC 5375 SW 7th Street Suite 400 • Topeka, Kan. 66606 785-267-1996 • www.ashgroveresources.com Brady Pryor, President Holliday Sand & Gravel Company 9660 Legler Road • Lenexa, Kan. 66219 913-492-5920 Kevan Fouts, President Houston Cement Company, L.P. 363 N. Sam Houston Parkway East Suite 390 • , Texas 77060 281-260-3700 James M. Gatens, President Kansas City Ready Mix Group 11011 Cody Street Suite 150 • Overland Park, Kan. 66210 913-345-2030 Allan Emby, President - Aggregates & Ready Mix Lyman-Richey Corporation 4315 Cuming Street • Omaha, Neb. 68131 402-558-2727 • www.lymanrichey.com Pat Gorup, President Permanent Paving, Inc. 11011 Cody Street • Overland Park, Kan. 66210 913-451-7834 • www.permanentpaving.com Stephen Bird, President Precision Packaging, Inc./Materials Packaging Corporation 10816 Executive Center Drive, Suite 100 • Little Rock, Ark. 72211 501-224-3372 • www.ashgrovepkg.com Stephen E. Boyland, President Home Office 11011 Cody Street • Overland Park, Kan. 66210 • 913-451-8900 • 800-545-1882 West Region Office 5 Centerpointe Drive Suite 350 • Lake Oswego, Ore. 97035 • 503-207-2700 • 800-547-3724 23 Corporate Contacts Accounting John Woodfill, Vice President - Finance Debbie Mays, Assistant Treasurer & Controller Mark Meads, Assistant Treasurer & Director of Taxation Contacts Contacts 24 Director of Communications & Public Affairs Jacqueline K. Clark, APR [email protected] Communications Administrator Susan E. Richardson [email protected] Ash Grove Cement Company 11011 Cody Street Overland Park, Kansas 66210 800-545-1882 913-451-8900 www.ashgrove.com This document is printed on 80 lb Flo Gloss Text, a Forest Stewardship Council-certified paper that is made with 10 percent post-consumer recycled content. Ash Grove Cement Company 11011 Cody Street Overland Park, Kansas 66210 www.ashgrove.com