Vulcan improves margins and returns to profits

Vulcan Materials' turnover for the first nine months improved by 6.7 per cent to US$2090.5m and the EBITDA moved ahead by 29.8 per cent to US$372.4m.

The trading profit jumped from US$29.4m to US$136.8m, with the third quarter showing a 78.6 per cent advance. After a net interest charge 3.9 per cent lower at US$152.8m, the pre-tax loss dropped by 91.1 per cent to US$11.2m, while a further tax credit gave rise to a net profit of US$15.3m compared with a US$56.1m the net loss a year earlier. Gross capital investment more than doubled from US$49.4m to US$117.3m. The net debt at the end of September was 11.4 per cent lower than a year earlier at US$2,277.7m, resulting in a giving a gearing level of 59.0 per cent, compared with 68.2 per cent a year earlier.

Turnover from aggregates recovered by 8.4 per cent to US$1,428.6m, as shipments increased by 2.5 per cent to 99.96Mt (110.19Mst). The average price improved by 3.4 per cent to US$11.89/t. Volumes in the third quarter rose by 8.6 per cent, with volumes in Arizona, Georgia, North Carolina and California increasing by in excess of 14 per cent. The volume increases were seen primarily in the private sector. For the full year, the improvement should be led by Vulcan's key states Georgia, Florida, Texas, Arizona and California.

The ready-mixed concrete and concrete products turnover increased by 15.4 per cent to US$349.9m, with ready-mixed concrete deliveries advancing by 13.0 per cent to 2.72Mm³ and the average price improved by 0.7 per cent to US$121.77/m³. Sales of asphalt mix was 0.6 per cent ahead at US$295.1m, though the volume did ease by less than 0.1 per cent to 4.72Mt. The average price was off by 0.6 per cent to US$60.41/t. 

Vulcan's overall cement deliveries advanced again by a further 14.4 per cent to 0.72Mt (0.8Mst). Inter-group deliveries were 15.9 per cent higher at 0.34Mt while third party sales moved ahead by 13.1 per cent to 0.38Mt. The average cement price achieved improved by 5.8 per cent to US$90.89/t (US$82.46/st) and the turnover improved by 12.7 per cent to US$71.6m. The previous year's US$1.6m nine month gross loss was turned into a US$2.86 profit this time.