Vulcan optimistic about prospects for 2015

Vulcan Materials Co. experienced a very successful fourth quarter of 2014, reporting an 11 percent increase in total revenues, a 15 percent increase in shipments and a 45 percent increase in gross profit compared with the prior year’s fourth quarter. According to Tom Hill, Vulcan president and CEO, the increases are a good sign for 2015.

“This strong momentum bodes well for 2015,” Hill says, “a year in which we expect a continued recovery in demand for our products and, importantly, an improving pricing and margin environment.

“Vulcan-served markets continue to show favorable above-average growth, with Vulcan markets growing faster than U.S. markets as a whole. Although aggregates demand remains well below normal levels, this steady and gradual improvement is a further indication of construction activity recovery. We continue to convert higher volumes into higher unit margins and are very well positioned for significant future earnings growth.”

According to Vulcan, it expects to generate an adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) somewhere between $755 million and $825 million this year. Vulcan is anticipating 180 million tons of aggregates shipments – up 11 percent from 2014. In addition, Vulcan expects its gross profit to increase more than 35 percent this year compared to 2014.

“We are excited about the volume growth, pricing momentum and strong margin expansion we see across our markets,” Hill says. “As we continue to execute our sales and operating plans, we remain focused on further improving the profitability of our businesses, strategically expanding our asset base to serve the needs of our customers, and continuing our disciplined management of capital.”