US-based construction materials producer Vulcan Materials Company has released its results for 2014 and the quarter ending 31 December 2014.
- Total revenues improved by 11% y/y to US$755 million.
- Gross profit grew by 45% y/y to US$170 million.
- Adjusted EBITDA for 4Q14 was 32% higher than in 4Q13, rising to US$172 million.
- Sales of aggregates in 4Q14 improved by 20% y/y to US$594 million, with shipments rising by 15% y/y. Growth was driven by increased construction activity across Vulcan’s end-markets.
- Concrete gross profit reached US$3 million. This compares to a loss of US$5 million in 4Q13.
- The asphalt segment’s gross profit increased by US$2 million.
- The company’s calcium business achieved revenues of US$2.5 million and gross profit of US$1.1 million.
- Total revenues came in at US$2994 million, up US$223 million (8%) on 2013.
- Gross profit reached US$588 million, representing growth of 38% y/y.
- Adjusted EBITDA was 28% greater than the previous year, reaching US$131 million.
- The company’s asphalt and concrete segments achieved gross profit growth, increasing by US$5 million and US$27 million, respectively.
- Vulcan invested US$332 million in strategic bolt-on acquisitions in 2014, which are expected to contribute around US$50 million to EBITDA in 2015.
“Our teams across the organisation executed very well in the fourth quarter, capitalising on the growing recovery in construction activity and demand for our products. Their efforts succeeded in converting more than 65% of our incremental aggregates revenues into incremental gross profit, and in doing so, they further improved the underlying profitability of our core aggregates business. These results, continuing the pattern of strong execution on our aggregates-focused strategy throughout the year, were achieved despite price gains muted by a negative geographic and product mix. This strong momentum bodes well for 2015, a year in which we expect a continued recovery in demand for our products and, importantly, an improving pricing and margin environment,” said Tom Hill, President and Chief Executive Officer.
The full results can be found on the company's website.
Adapted from press release by Louise Fordham
Read the article online at: https://www.worldcement.com/the-americas/09022015/vulcan-releases-2014-full-year-results-299/