Vulcan reports fourth-quarter growth

Vulcan Materials Co. released its fourth-quarter results, reporting 14 percent higher revenues over the prior year’s fourth quarter.

According to Vulcan, gross profit and gross profit margins improved in the company’s aggregates, asphalt and concrete segments. The company achieved its 10th straight quarter of year-over-year improvements in both aggregates shipments and per-ton margins. Same-store aggregates shipments rose 8 percent, and same-store freight-adjusted aggregates pricing increased 11 percent from the prior year.

The company’s adjusted 2015 earnings before interest, taxes, depreciation and amortization (EBITDA) were $836 million. Vulcan expects a 2016 EBITDA of between $1.0 and $1.1 billion.

“Our teams across the company did a great job serving our customers and running our operations safely and efficiently,” says Tom Hill, Vulcan president and CEO. “Full-year 2015 aggregates volume increased 7 percent on a same-store basis in 2015, and we expect a similar level of volume growth in 2016.”

According to Hill, the pricing environment remains strong for Vulcan’s products.

“Customers see improved backlogs, and construction materials suppliers increasingly focus on earning adequate returns on capital deployed,” he says. “Aggregates pricing increased 7 percent in 2015, and we expect similar growth in 2016.”

Vulcan benefited from warmer fourth-quarter weather, as well. For example, same-store aggregates shipments in California and Florida increased more than 15 percent, and shipments in Georgia increased 22 percent, according to Vulcan. In Texas, where significant rainfall was recorded in October and November, same-store shipments increased in the low single-digits.

Also, Vulcan’s gross profit per ton of aggregates increased 36 percent in the fourth quarter compared with the prior year.

Learn more about Vulcan’s expectations for 2016 here.