Vulcan Materials shares first quarter 2018 results

Hill

Vulcan Materials Co. released results for the first quarter ending March 31.

First quarter earnings from continuing operations increased 23 percent year-over-year to $53 million on a 9 percent increase in total revenues. Gross profit was $159 million, led by a 7 percent increase in the aggregate segment.

First quarter aggregate segment gross profit for Vulcan increased 7 percent to $148 million, or $3.66 per ton. Vulcan attributes operating disciplines and the absence of one-time costs, such as California flooding in first quarter 2017, which helped offset a 26 percent increase in the unit cost for diesel fuel, the planned shutdown of three large facilities for repairs ahead of construction season, and above-normal distribution costs due to storm-related ship and barge movement inefficiencies.

Aggregate shipments in the first quarter increased 6 percent versus the prior year’s first quarter. After being down 3 percent through February, same-store daily shipment rates for aggregate were up 7 percent year-over-year in March, reflecting demand consistent with full year expectations, the company says.

“Our first quarter results represent a solid start to the year and were consistent with our internal plans and full-year expectations despite difficult weather and higher than anticipated energy costs,” says Tom Hill, chairman and CEO of Vulcan Materials. “Key leading indicators, as well as our shipment patterns through the first quarter and through April, support our full-year volume expectations. Aggregate pricing momentum continues to improve, supported by demand visibility, higher diesel prices and tight logistics capacity.”

Leading indicators such as employment growth and construction starts indicate a continued recovery in demand across Vulcan’s footprint, the company says. Construction starts data for Vulcan markets – as well as the Company’s backlogs, booking rates for future work and shipment patterns – all suggest improved demand visibility.