Vulcan posts first-quarter gains

Vulcan Materials Co. released its 2014 first-quarter results, revealing total revenue for its aggregates business segment was up 13 percent and gross profit increased 55 percent compared with last year.

“Our aggregates business reported solid growth in the first quarter despite extremely cold weather in most of our markets, and we remain confident in the full year expectations we announced in early February,” says Don James, Vulcan’s chairman and CEO.

He said the demand for the company’s products in each of its markets continues to build and its operations and sales teams are producing solid margins.

“On a 6 percent increase in aggregates volume, our teams delivered a 55 percent increase in aggregates gross profit despite the production and shipping challenges that come with a cold, wet winter,” James says. “Aggregates pricing continues to benefit from improving demand, and we are realizing price improvements across virtually all of our markets.”

Overall, the company’s net sales increased $44 million, or 9 percent, and gross profit was up $16 million, or 93 percent, over last year. The company has benefited from its robust aggregates business, as well as recent sales and acquisitions.

“Although construction activity and aggregates consumption remain far below historical levels, our aggregates shipments have now increased year-over-year for four consecutive quarters,” says James. “With the strength of our aggregates reserves positions, our continuing profit enhancements, the divestitures of non-strategic operations, and significant debt reduction, Vulcan remains very well positioned to grow earnings faster than sales during this period of aggregates demand recovery.”