US-based Vulcan Materials Company has published its results for the quarter ending 30 September 2014. Highlights of the company’s 3Q14 results are provided below.
- Total revenue grew by 7% y/y, the equivalent of US$60 million.
- Gross profit was US$50 million or 31% higher than in 3Q13.
- Adjusted EBITDA increased by 26% y/y to US$215 million.
- Together, the asphalt, concrete and cement segments experienced a 26% y/y rise in gross profit.
- Gross profit for Vulcan Materials’ asphalt segment grew by US$1 million, although volumes were lower than expected after several big projects were delayed until 2015.
- Concrete gross profit came in at US$5 million, up from a loss of US$4 million in the same period in 2013. The results in 3Q13 included the company’s Florida concrete business, which was sold in 1Q14.
- Vulcan Materials also sold its cement business in 1Q14 but retained its calcium products business under the cement segment. This segment’s revenues were in line with those achieved in 3Q13.
- Aggregate sales improved by 15% y/y in 3Q14, boosted by higher volume growth. Shipments were up by 12% y/y, with a 31% y/y increase in Illinois and a 21% y/y increase in Texas.
- The company completed six acquisitions in 3Q14. These represented a total investment of US$318 million.
- Year-to-date, the company has generated US$890 million in cash from the sale of assets and the results of operations.
- Vulcan Materials has reported capital expenditures of US$169 million in January – September 2014.
- Long-term debt has been reduced by US$516 million year-to-date.
“Strong growth in aggregates volumes and solid operating performance in our aggregates businesses led to significant earnings growth for the company. Our third quarter results continued to demonstrate the earnings leverage of volume growth in our aggregates business. We are also seeing the benefit of our continuing efforts to grow unit profitability and leverage our overhead structure. Over the past twelve months, aggregates shipments have increased 9%, or 13 million tons. During the same period, Aggregates segment gross profit has increased 30%, or US$117 million,” said Tom Hill, President and Chief Executive Officer.
“The overall pricing outlook for our aggregates products continues to improve with the recovery in demand for construction materials. Our aggregates shipments have grown for six consecutive quarters, and we expect this demand momentum to lead to accelerating price growth. This lead-lag relationship between growing volumes followed by accelerating price growth is typical for our business. We already see price increases between 5 and 10% in certain markets, particularly where the recovery in construction activity is further along. As we look ahead, we believe price momentum will increase with continued volume growth.”
Adapted from press release by Louise Fordham
Read the article online at: https://www.worldcement.com/the-americas/06112014/highlights-from-vulcan-material-company-3q14-results-809/