Double-digit growth highlights second quarter 2019 at Vulcan Materials

By |  July 29, 2019
Headshot: Tom Hill, Vulcan Materials

Hill

Net earnings at Vulcan Materials were $198 million in the second quarter, a 24 percent increase compared to last year’s second quarter. Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) totaled $372 million, a 15 percent improvement compared to the same time period last year.

The double-digit growth was driven by a 16 percent increase in the aggregate segment gross profit, Vulcan says. Aggregate shipments increased 4 percent year-over-year, and aggregate pricing rose 5.9 percent.

“We continued to execute well,” says Tom Hill, chairman and CEO of Vulcan Materials. “Our industry-leading unit profitability in aggregate increased from $5.16 to $5.74 per ton, an 11 percent increase compared to the prior year’s second quarter. We remain keenly focused on creating long-term value by compounding our aggregates unit margins, while continuing to operate safely.”

Vulcan’s aggregate business

Second quarter gross profit improved 16 percent to $329 million, and segment sales also jumped by double digits at an 11 percent increase. As Hill says, unit margins increased from $5.16 to $5.74 per ton, an 11 percent ($0.58) increase. This improvement was the result of growth in shipments, price improvements and operating efficiencies, Vulcan says.

“Shipment growth in the second quarter was solid and consistent with full-year expectations,” Hill says. “Importantly, price improvements were widespread. These results further highlight the strength of our aggregates-focused business, which serves Vulcan’s attractive long-term growth markets.”

Furthermore, all of Vulcan’s key markets reported year-over-year price growth.

The underlying demand fundamentals of increased public funding for highways, along with population growth and employment, spurred shipment strength across most of the company’s footprint, specifically the Southeast and Mid-Atlantic, Vulcan says. A healthy demand environment, led by transportation-related construction, is driving volume growth and price improvement, Vulcan says.

Wet weather caused shipment delays in Illinois, Tennessee and Texas, while California overcame another quarter of wet weather to realize shipment growth compared to the same period last year.

Zach Mentz

About the Author:

Zach Mentz is the managing editor for both Pit & Quarry and Portable Plants magazines. Zach is a graduate of the Tim Russert Department of Communications at John Carroll University. His previous experience also includes time spent in the Cleveland Indians communications department.

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