Vulcan's pretax profit grows by 67%

Vulcan Materials' turnover increased by 4.7 per cent in 2016 to US$3592.7m and EBITDA rose by 17.3 per cent to US$965.5m. After a net interest charge 39.5 per cent lower at US$133.3m, there was pretax profit of US$547.3m, a 66.9 per cent improvement. At the net level there was an 89.7 per cent advance to US$419.5m. Capital expenditure rose by 21.1 per cent to US$350m and is forecast to be in the region of US$300m in 2017. EBITDA is estimated by the group to be in the region of US$1175m for 2017, which would mean a 21.7 per cent advance. 

The turnover from aggregates advanced by 6.6 per cent to US$2961.8m as aggregates shipments advanced by 1.7 per cent to 164.54Mt (181.37Mst). The freight-adjusted average price increased by 6.8 per cent to US$13.94/t. The final quarter registered a volume growth nine per cent of following last year’s growth in excess of 15 per cent with the exception of California, Illinois and coastal Texas in that showed a decline in excess 15 per cent.  The group is expecting volumes to increase by between 5- 8 per cent during 2017, with a stronger growth rate during the second half of the year and prices are forecast to improve by around six per cent. 

Turnover in concrete improved by 10.3 per cent to US$330.1m, while ready-mixed concrete volumes staged a 6.8 per cent to recovery to 2.29Mm³ and the average price was 3.4 per cent higher at US$143.90/m³. The asphalt turnover rose by 3.5 per cent to US$512.3m and the gross profit rose by 24.9 per cent to US$97.7m, while asphalt shipments declined by 3.2 per cent to 8.49Mt and the average sales price eased by 1.5 per cent to US$58.92/t per tonne.  The calcium volume, finally, was 1.6 per cent ahead at 0.3Mt.