US-based Vulcan Materials Company has released its results for the quarter ending 31 March 2015.
- Vulcan has reported a revenue of US$631 million, up 10% on 1Q14.
- Gross profit improved by 128% to reach US$78 million.
- Adjusted EBITDA totalled US$77 million, a 97% rise on the corresponding quarter in 2014.
- The company’s asphalt, concrete and calcium business segment saw its gross profit grow by US$15 million. Within this, the asphalt gross profit came in at US$9 million, calcium at US$0.6 million, and concrete at US$0.9 million.
- The aggregates segment achieved a gross profit of US$68 million, 76% higher than in 1Q14. Aggregates shipments improved by 13% to reach 33.5 million t.
“Our local leadership teams continue to excel at balancing our core profit drivers: price for service, sales and production mix, and operating efficiency and leverage,” says Tom Hill, Vulcan’s President and Chief Executive Officer. “Although demand for our products remains well below normal levels, the gradual recovery in construction activity continues across most of our markets. As a result of improving market conditions and our continued focus on internal profit improvements, both pricing and margins continue to expand. Looking ahead, we remain well positioned to serve our customers and to achieve strong earnings growth in 2015 and beyond.”
Tom Hill on the outlook for the year ahead
“Our teams throughout the company are executing well. We are pleased with our first quarter results, despite challenging weather in several key markets. Our performance in the quarter directly reflects the great efforts of our people at all levels of the organisation.”
“Underlying demand remains strong, and we are seeing accelerating momentum in aggregates volumes and pricing throughout our markets. The growth rate in our trailing twelve-month aggregates shipments has increased for seven consecutive quarters and, as expected, that momentum is beginning to benefit aggregates pricing. This momentum underscores our confidence in the full year expectations we provided in early February of this year,” Hill explains.
“Those expectations for 2015 include adjusted EBITDA of US$775 to US$825 million, driven by strong growth in aggregates gross profit, earnings improvement in our non-aggregates businesses and continuing leverage of our selling, administrative and general expenses. Supporting these expectations for strong earnings growth is an 11% increase in aggregates shipments (8% same-store) and a 6% increase in pricing. As noted, we realised cost savings from lower costs for diesel fuel in the first quarter. If diesel prices remain at current levels, our adjusted EBITDA expectations would move towards the high end of our guidance,” adds Hill.
“Momentum remains strong in Vulcan-served markets. We are optimistic about the volume growth, pricing momentum and strong margin expansion we see across our markets. We will remain focused on executing our sales and operating plans to deliver quality products and services to our customers safely and efficiently and on achieving significant future earnings growth and margin expansion.”
The full report can be found on the Vulcan’s website.
Adapted from press release by Louise Fordham
Read the article online at: https://www.worldcement.com/the-americas/12052015/vulcan-1q15-results-highlights-826/