Vulcan sees main growth coming from the residential market, USA
Vulcan Materials' first-half turnover increased by 3.8 per cent to US$1276.9m and the EBITDA rose by 32.4 per cent to US$192m. The trading result swung from a US$26.6m loss into a profit of US$36.8m and after a net interest charge 2.2 per cent lower at US$103.6m, the pre-tax loss was reduced by 50.7 per cent to US$64.2m. The net attributable loss was reduced by 64.8 per cent, to US$31.5m.
Capital investment is now increasing again and went up by 78.8 per cent to US$60m. Net debt declined by 7.8 per cent to US$2,447.6m, to give a gearing level of 64.2 per cent compared with 70.9 per cent a year earlier.
Vulcan sold 0.46Mt (0.51Mst) of cement in the six months, an increase of 17.2 per cent increase, with inter-group deliveries rising by 16.5 per cent to 0.24Mt and third party sales also ahead by 16.5 per cent in this case to 0.22Mt. Average cement prices improved by 6.2 per cent to US$91.37/t (US$82.89/st), and the turnover advanced by 13.9 per cent to US$46.51m. The gross loss of US$1.17m a year ago was turned into a US$3.38m profit this time, which was also helped by a reduction in production costs.
Turnover from aggregates improved by 4.9 per cent to US$867.4m, with external sales being 4.4 per cent higher. The volume declined by 1.1 per cent to 61.16Mt (67.42Mst). The average price achieved was 4.1 per cent higher at US$11.84/t. The second quarter saw growth rates in excess of 50 per cent in Florida and Arizona and in Texas and along the central Gulf Coast growth superior to 20 per cent, while aggregates deliveries in North Carolina and California was up in the teens. On the other hand, volumes declined in Virginia and in the Mid-West because of wet weather and timing of contracts.
Ready-mixed concrete and concrete products turnover advanced by a further by 12.6 per cent to US$220.2m and ready-mixed concrete deliveries rose by 10.9 per cent to 1.72m m³ on average prices that were 0.2 per cent ahead at US$120.64 per m³. Increased building activity in Florida is an important growth factor this year. Sales of asphalt mix produced at turnover 4.5 per cent lower at US$167.2m, with the average price declining by 1.2 per cent to US$59.76 per tonne on volumes were 2.9 per cent lower at 2.75m tonnes
