Vulcan experiences second-quarter increases

Vulcan Materials Co.’s net sales and gross profit both increased in the second quarter of this year, the company said upon releasing its quarterly performance results to the public.

Vulcan’s net sales increased 7 percent versus the prior year, and its gross profit went up 25 percent compared with the second quarter of 2012. Aggregates shipments increased 2 percent from the prior year, the company said, and pricing went up 4 percent versus 2012.

“Each of our operating segments reported solid growth in second quarter earnings, contributing to improved gross profit margin and earnings per share,” says Don James, Vulcan chairman and CEO. “We achieved these results despite challenging, wet weather conditions that sharply reduced June shipments in many markets.”

James added that Vulcan continues to benefit from recovery in private construction activity, particularly residential construction, in many of the company’s key markets.

“We realized strong increases in second-quarter aggregates shipments in key states – driven mostly by housing demand,” he says. “Growth in residential construction activity, and its traditional following impact on private nonresidential construction, continues to underpin our expectations for volume and earnings improvement in 2013.

“Assuming more normal weather patterns, we expect that most of the delays in shipments due to weather in the first half of the year can be recovered in the second half of the year.”

According to James, shipments in Arizona and Florida increased more than 50 percent due mostly to strong private construction demand. Shipments in Texas and along the central Gulf Coast also benefited from stronger demand, particularly large industrial projects. They increased more than 20 percent versus the prior year.

Aggregates shipments in North Carolina and California increased 10 to 20 percent compared to the prior year, the company said. Shipments in the Midwest and Virginia were sharply lower due to wet weather and the timing of certain large projects in the prior year.