Vulcan’s profit falls following exceptional gains in previous year

Vulcan Materials' first-half turnover rose by 11.8 per cent to US$1526.4m, but EBITDA declined by 31.8 per cent to US$300.2m. The trading profit fell by 44.8 per cent to US$164.59m after the exceptional gain on the disposal of the cement business in the previous year. After a net interest charge nine per cent lower at US$146.1m, the pretax profit dropped by 86.6 per cent to US$18.9m. The net attributable earnings line went from US$100m to US$8.5m.

Net debt was increased by 10.8 per cent to US$1971.6m, giving a gearing level of 46.6 per cent compared with 43.5 per cent a year earlier.
 
The total aggregates volume advanced by 10.5 per cent to 73.44Mt (80.96Mst), is spite of very wet weather in large parts of the areas supplied. The freight-adjusted sales price improved by 6.2 per cent. The underlying volume growth rate was around seven per cent and prices improved by some five per cent. Vulcan expects both volumes and prices to show further improvements during the second half.

Ready-mixed concrete deliveries were badly affected by the wet weather, notably in Virginia and Texas, and dropped by 31 per cent to 1.01Mm³ but the average price was 8.3 per cent ahead at US$137.50/m³.  Sales of asphalt mix were 28.8 per cent higher at 3.85Mt, but the average price was just 0.8 per cent ahead at US$59.26/t. The modest calcium business increased volumes by 2.6 per cent and prices by 2.4 per cent.