Vulcan looks for further improvements in 2013

Vulcan Materials' turnover edged up by 0.1 per cent last year to US$2567.3m, marking the second consecutive year of virtually static sales.

EBITDA, again little changed, eased by 0.4 per cent to US$423.5m. Excluding exceptional exchange offer costs, the EBITDA increased by 9.2 per cent to US$466.8ms. After a net interest charge 2.4 per cent lower at US$211.9m, the pre-tax loss was again reduced by around one-fifth to US$120.4m and the net loss came down by 25.7 per cent to US$52.7m. Capital expenditure declined by 5.6 per cent to US$93.4m. Net debt was 9.7 per cent lower at US$2401.5m, giving a gearing level of 63.9 per cent compared with 70.1 per cent a year earlier.

Turnover from aggregates eased by 0.3 per cent to US$1729.4m as aggregates shipments declined by a further 1.4 per cent to 127.88Mt (140.96Mst), with 2012 being the seventh year of decline in a row. The freight-adjusted average price increased by 1.9 per cent to US$11.51/t, and a two per cent reduction was achieved in the cost of sales. Volumes increased in Florida, North Carolina, Texas and Arizona, but were lower in California, Georgia and in the Midwest. Average selling prices were increased in nearly all of Vulcan's markets. The group is expecting volume increases of between one and five per cent in most markets, with an increased second half weighting in view of then strong start seen to 2012. The full year freight adjusted price is forecast to improve by around four per cent.

Concrete turnover rose by 8.5 per cent, to US$406.4m after a 2.2 per cent drop in the previous year, while ready-mixed volumes advanced by 8.8 per cent to 3.23Mm³, but the average price was virtually unchanged at US$120.58/m³. Increased housebuilding activity should help profitability in 2013. Asphalt turnover declined by 5.2 per cent to US$378.1m with asphalt shipments falling by seven per cent to 6.08Mt, but the average price advanced by 1.1 per cent.

The cement turnover rose by 17.6 per cent to US$84.6m as overall volumes increased by 18.4 per cent to 0.85Mt. Third party sales advanced by a further 16.3 per cent to 0.4Mt and inter-group deliveries rose by 20.3 per cent to 0.45Mt. The average cement price achieved recovered by 5.5 per cent to US$85.73/t (US$77.77/st). The loss in cement was reduced by 38.1 per cent last year to US$2.81m. Lower production costs should help improve profitability in 2013.