Caesarstone optimistic for 2024 after tumultuous year; U.S. hard-surface imports readjust after end of post-pandemic boom; Cosentino hosts C.Next in Cabo.
00:30 Caesarstone Plans Ahead After Tumultuous 2023
04:30 A Word from TAB Quartz
05:43 U.S. Hard-Surface Imports Down 15% in 2023
08:29 Cosentino Offers C.Next Sessions in Cabo
11:01 Neolith Taps Sanchez as CEO for North America, LATAM
12:27 Brazil Shows Natural Stone's Best at KBIS
14:14 NSI Honors Arcot, Osterhout
Radio Stone Update is presented on the first and third Wednesdays every month at 9 a.m. everywhere on Earth with the latest news and insights in hard surfaces. Check our archives at www.radiostoneupdate.com.
Caesarstone optimistic for 2024 after tumultuous year; U.S. hard-surface imports readjust after end of post-pandemic boom; Cosentino hosts C.Next in Cabo.
00:30 Caesarstone Plans Ahead After Tumultuous 2023
04:30 A Word from TAB Quartz
05:43 U.S. Hard-Surface Imports Down 15% in 2023
08:29 Cosentino Offers C.Next Sessions in Cabo
11:01 Neolith Taps Sanchez as CEO for North America, LATAM
12:27 Brazil Shows Natural Stone's Best at KBIS
14:14 NSI Honors Arcot, Osterhout
Radio Stone Update is presented on the first and third Wednesdays every month at 9 a.m. everywhere on Earth with the latest news and insights in hard surfaces. Check our archives at www.radiostoneupdate.com.
Hi, I’m K. Schipper with the latest in hard surfaces industry news from Radio Stone Update.
0:30
Caesarstone is planning on a better 2024 – but it will take a little time. The good news from company officials is that Caesarstone begins the year with a positive cash flow and prospects of major improvements in corporate savings for the next two years.
The cash and savings, however, come from a major restructuring plan for the surfaces producer that included the closing of two factories, reduction of product inventory, and increased out-sourcing of manufacturing to private-label suppliers.
Yos Shiran, company CEO – in announcing year-end financial results last week – says the 2023 strategic plan and restructuring actions taken last year have allowed Caesarstone to achieve its primary financial objective for 2023 -- to generate positive cash flow from operations and end the year with a solid net cash position.
“We continue to position Caesarstone’s production footprint advantageously around the world and our teams have executed well to generate meaningful cost savings from our global restructuring options,” Shiran says.
Caesarstone reported revenue of $562.2 million last year, down from $690.8 million in 2022. Operating expenses also declined to $180 million last year, compared to $221.9 million in 2022. Caesarstone CO Nahum Trost attributed the revenue decline mainly to lower volume, driven by challenging market conditions.
The $271.6 million in revenues last year from the United States, which accounts for roughly half of all Caesarstone sales, showed a 20.6 percent decrease from 2022, with much of that being blamed on higher interest rates slowing the home remodeling market.
Australia, Caesarstone’s second-largest market, saw an 8.7 percent decline from 2022, or a loss of revenue of $106.2 million. However, that nation’s federal government has mandated a stop to using engineered stone by July 1, 2024.
Shiran says the company has been proactive in its approach to supplying the Australian market with alternative materials that will comply with its new regulations and expects to have a full collection of products by the July 1 date.
Caesarstone also enters 2024 with an emphasis on outside-the-company manufacturing. Shiran said the company is now outsourcing more than 40 percent of its products from production business partners, and that percentage is expected to rise as the year progresses.
This comes after Caesarstone closed its original plant in Israel and its U.S. factory in Richmond Hill, Ga. The closings allowed the company to reduce its global workforce by approximately 14 percent, saving approximately $20 million this year.
Along with outsourcing more production, the company has moved to reduce excess inventory. At the beginning of 2023, Caesarstone held approximately 170 days of inventory, which it had reduced to 120 days at the end of 2023. However, selling off the excess inventory from the U.S. plant won’t result in major cuts in expenses, Trost explained, because the Richmond Hill excess inventory reflects materials to be sold at higher prices.
Caesarstone’s efforts resulted in an increase in cash flow from $28.2 million at the end of 2022 to $83.5 million at the end of last year. Cash flow from operations totaled $66.5 million at the end of 2023. Caesarstone Ltd., which is listed on the NASDAQ exchange at CSTE, offers premium surfaces worldwide.
5:43
This is Emerson Schwartzkopf, editor of Stone Update. The $373.9 million in U.S. hard-surface imports in December showed a slight increase – 2.2% -- from the same time in 2022. It’s another sign that the flow of products coming into this country is holding steady … and that we’ve moved on from the big post-pandemic boom in business.
Looking back on 2023, The $4.7 billion in hard-surface shipments to the United States last year is an impressive total, but it’s also 15% less than what came through U.S. ports-of-entry in 2022. The biggest decline in major sectors came with quartz surfaces, which dropped 19% from $1.7 billion in 2022 to $1.4 billion in 2023.
None of the natural-stone categories did much better. The $666 million worth of granite received stateside last year is an 18% decline from 2022; marble dropped 12% to $662 million s. The Other Stone category, which includes quartzite, totaled $461 million in 2023, or 16.5% less than in 2022.
Porcelain technically did the best of all product groups in 2023, with only a single-digit decline in value from the previous year. The $1.2 billion of surfaces sent to the United States in 2023 only represented a 9% drop.
As far as volume, the 187 million ft² of quartz surfaces imported last year is down 13% from 2022. Most natural-stone categories showed annual tonnage declines of 16% to 18%, except for the 25% drop for travertine and non-roofing slate. And the 1.1 billion ft² of porcelain coming to the United States last year marked only a 5.7% decrease from 2022.
We’ll have a detailed report on 2023 hard-surface imports in the next edition of Stone Update Magazine, set to go live online near the end of March. If you’d like to see some end-of-the-year numbers, they’re available now in the latest issue of Hard Surface Report at www.hardsurfacereport.online/dec23.
8:29
Cosentino Group kicked off 2024 with its annual C.Next Summits in late January and early February.
A global leader in the production and distribution of innovative surfaces for the world of architecture and design, Cosentino hosted C.Next Fabricators Jan. 30-Feb. 3, followed by C.Next Designers Feb. 4-8. Both events aim to build professional connections and create meaningful designs.
Now in its 25th edition, C.Next Fabricators drew nearly 500 individuals representing more than 180 North American manufacturing and processing companies. They and top industry organizations gathered for the first time at the Grand Velas in Los Cabos, Mexico, for four days of programming.
Opening the conference, Cosentino President and CEO Francisco “Paco” Martinez-Cosentino thanked attendees and industry partners.
“The last year has been everchanging, as the industry has faced many new challenges,” Martinez-Cosentino said. “But that didn’t stop us from innovating new products. We are forward-thinking and creating sustainable products has always been a core focus for our brand.”
Other programming highlights included discussions on sustainable product innovations and how fabricators and designers work hand-in-hand with key Cosentino executives. Company executive vice presidents Eduardo Cosentino, and Pilar Cosentino spoke on running a multigenerational business, and supporting business through partnerships, as well as different aspects of growing a business.
Keynote speaker Jeremy Poincenot, a professional inspirational speaker and blind golf champion, spoke on rising to face obstacles and seeing them as opportunities. And a panel of speakers from the American Society of Interior Designers (ASID), the International Surface Fabricators Association (ISFA), the National Kitchen and Bath Association (NKBA), and the Natural Stone Institute (NSI) presented information on fueling business growth.
On the heels of C.Next Fabricators, Cosentino hosted its third edition of its C.Next Designers Summit, which gathered nearly 300 designers and partners from across North America.
Cosentino Group currently distributes its products and brands in more than 110 countries from its headquarters in Cantoria, Spain.
11:01
Sintered stone producer Neolith announced the appointment of Daniel Sanchez as CEO of Neolith North America and Latin America.
A veteran of 15 years with Neolith, Sanchez previously served as Chief Commercial Executive and Vice President for Neolith in Europe. He recently relocated to Miami to be near Neolith’s Pembroke Pines, Fla., distribution center.
Jesus Ayarza, CEO of Neolith Group, says Sanchez has been a valued member of the Neolith team for many years, adding, “His experience and leadership have been an integral part of Neolith’s success around the world and in the U.S. We are confident that his leadership will enable the company to continue our expansion in the American regions and globally.”
Sanchez’s leadership has been instrumental in defining and driving Neolith’s global footprint and route-to-market approach. Neolith operates in more than 100 countries worldwide.
“Our main mission has always been to satisfy the needs of all types of markets and professionals and do so in an entrepreneurial and innovative way,” says Sanchez. “Our constant contact and feedback from different stakeholders that interact with Neolith has been crucial to anticipate trends and rapidly adapt our product to the architectural and design community.”
12:27
One of the main attractions of natural stone is its materials carry the history of millions of years on the planet. Brazil contains more than 1,200 types of catalogued materials, making the country the most geo-diverse on the planet. A sample of the country’s riches will be on display at KBIS 2024 this week in Las Vegas.
Brazil’s participation will occur through “It’s Natural – Brazilian Natural Stone,” an export incentive program developed by the Brazilian Center of Natural Stones Exports (Centrorochas) in partnership with the Brazilian Trade and Investment Promotion Agency (ApexBrasil).
Says Tales Machado, president of Centrorochas, “Quartzite is currently one of the most globally demanded stones. The recent change is the result of technological advancement in the sector, enabling more uniform surfaces, precise cuts, and sophisticated finishes.”
He also highlighted that quartzite will be the centerpiece of the Brazilian booth at KBIS. The space will showcase floor and wall coverings in Mont Blanc quartzite, artwork crafted in Sauipe, and Baccarat quartzite, as well as furniture sculpted in Green Pantanal.
Located in the South Hall, booth #SL6015, the space will feature a specially reserved area for the exhibition of 16 materials in cube format. The layout was planned to provide visitors with a sensory and dynamic experience with natural stones.
“It’s Natural – Brazilian Natural Stone” aims to stimulate and increase the exports of Brazilian ornamental stones through a set of strategic actions, including promotion, image strengthening and sectional development in the global market.
14:14
StonExpo isn’t just a tradeshow. It’s also the time for the Natural Stone Institute to hand out its annual awards, and among those honored in late January were Sam Arcot, the 2023 Natural Stone Institute Person of the Year, and Greg Osterhout, who received the 2023 David Fell Spirit of Service Award.
The Person of the Year Award is presented to an individual who has provided extensive support to the association’s executive team. Arcot has more than 20 years’ experience in the natural stone industry, the last 14 at Rugo Stone. Over that time he has been seen as a dedicated leader and tireless volunteer for NSI, where he currently serves on the board of directors and is a Natural Stone Foundation donor.
NSI CEO Jim Heib called Arcot’s involvement over the past two years incredible, saying, quote, “He’s served as a champion for sustainability, extended the association’s relationships with other countries and has been a model advocate for NSI membership.” End quote.
Arcot has been a key advocate in the development of the NSI statement of human rights, which complements the sustainable work practices that exist through NSI’s third-party verified Natural Stone Sustainability Standard. He’s also led an effort to strengthen the association’s relationship with key trade associations and trade shows in his native India.
The David Fell Spirit of Service Award is presented in memory of David Fell, president of BG Hoadley Quarries. Fell passed away in 2021, and his memory now lives on through this award which is presented to recognize a company or individual involved with the Gary Sinise Foundation R.I.S.E. program.
Under his leadership at Northern Stone Supply, Osterhout stepped in to support the program by donating natural stone to 11 home projects, and R.I.S.E. is the company’s charity of choice. That can often mean working evenings and weekends with his staff to ensure the chosen stone is available for the home when it’s needed.
In 2020, Osterhout served as the chair of NSI’s R.I.S.E. Committee. His vision was the catalyst for growing the association’s involvement with the program, which has become widely adopted and supported by NSI members. To learn how your company can get involved in future R.I.S.E. projects, go to www.naturalstoneinstitute.org/RISE.
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.