Vulcan Materials sees good volume growth in most markets

Vulcan Materials, the largest US aggregates producer, generated a first-quarter turnover 9.9 per cent ahead at US$631.3m and EBITDA declined by 70.6 per cent to US$78.5m.

At the trading level, the first quarter there was a US$10.8m profit compared with a US$194.7m profit a year earlier when there was a substantial capital gain from the sale of the cement operations, along with the ready-mixed concrete operations in Florida and southern Georgia, to Cementos Argos. The net interest charge in the period was reduced by 48 per cent to US$62.5m, giving a swing at the pre-tax loss of US$50.7m and at the net attributable level the loss amounted to US$39.7m.

Aggregates shipments in the quarter increased by 13.1 per cent to 30.39Mt (33.5Mst) and the average price improved by 3.7 per cent to US$12.50/t (US$11.34/st) and the aggregates turnover rose by 17.2 per cent to US$379.9m. Volumes rose by in excess of 10 per cent in Arizona, Florida, Illinois, North Carolina, Texas and Virginia, while shipments in California increased by eight per cent. On the other hand, Georgia shipments declined by four per cent. Price improvements from the 1 April have been well accepted.

The asphalt volume rose by 22.7 per cent to 1.60Mt and the average price improved marginally by 0.1 per cent to US$58.56/t (US$53.13/st). Ready-mixed concrete deliveries declined as a result of the disposals of these activities in Florida and southern Georgia last year. The turnover in ready-mixed concrete declined by 37.7 per cent to US$59.8m, while volumes were 40.2 per cent lower at 0.44Mm³ but the average price showed a 9.3 per cent improvement to US$136.36/m3.