Vulcan posts second-quarter results

Vulcan Materials Co. released its second-quarter results, which show earnings growth and margin expansion despite below-trend shipment growth due to extremely wet weather and slower-than-expected large project starts.

Compared with Vulcan’s second quarter results from 2015, aggregates shipments rose 1.3 million tons, or 3 percent, to 49 million tons, and aggregates pricing increased 84 cents per ton, or 7 percent, the company reports. Aggregate segment sales increased $58 million, or 8 percent, to $791 million, and aggregates freight-adjusted revenues increased $56 million, or 10 percent, to $615 million.

In addition, total revenues increased $62 million, or 7 percent, to $957 million in the second quarter. Gross profit increased $58 million, or 25 percent, to $292 million, and shipments increased 3 percent, or 1.3 million tons, to 49 million tons.

According to Vulcan, for the first half of 2016, aggregates shipments grew 9 percent over the same period in 2015, and aggregates pricing increased 8 percent.

Compared with the prior 12-month period ending June 30, total revenues increased $452 million, or 14 percent, to $3.6 billion, and gross profit increased $311 million, or 45 percent, to $1 billion during this 12-month period.

Aggregates segment sales increased $442 million, or 17 percent, to $3 billion, with aggregates freight-adjusted revenues increasing $351 million, or 18 percent, to $2.3 billion when comparing this 12-month period to the prior 12-month period. In addition, total aggregates shipments increased 9 percent, or 15 million tons, to 185 tons; same-store shipments increased 8 percent; sales price increased 9 percent; and segment gross profit increased $264 million, or 43 percent, to $883 million.

“The fundamentals of our aggregates-focused business remain attractive, and we are reaffirming our full-year adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) guidance,” says Tom Hill, Vulcan chairman and CEO. “In several markets, higher levels of public funding for transportation and other infrastructure have yet to convert into construction activity, creating a ‘lull’ in materials shipments to these end uses. Taken in total, however, our first-half aggregates shipment growth of 9 percent was roughly in line with recent trend. Longer-term project pipelines appear healthy, and the foundations for sustained, multi-year volume and pricing growth remain in place.”