Vulcan Materials releases second-quarter earnings summary

Vulcan Materials Co. shared its second-quarter earnings summary last week, announcing that its aggregates segment gross profit improved 9 percent due to increased productivity and cost-reduction initiatives.

Vulcan’s aggregates shipments increased slightly on a same-store basis from the prior year period, notwithstanding the pull-forward effect of seasonally favorable weather conditions during the first quarter and the effects of Tropical Storm Debby in Florida in June. Overall, Vulcan shipments decreased 1 percent due to the sale of operations in Indiana last year.

Also, aggregates pricing increased slightly, offsetting some of the earnings effect of a less favorable geographic mix.

“Despite weaker volumes in several of our most profitable markets, aggregates segment gross profit margin improved by 220 basis points,” says Don James, Vulcan’s chairman and CEO. “Cash earnings per ton of aggregates increased to $4.57 per ton.”

James adds that trends in both private- and public-sector construction markets are positive.

“In particular, we are encouraged by the passage of the new multi-year highway bill by Congress in late June, which should provide state departments of transportation with funding certainty they need to move forward on infrastructure programs,” he says.