Vulcan Materials improves net profit

Vulcan Materials, the largest US aggregates producer, generated a 1Q17 turnover 4.3 per cent ahead at US$787.3m while EBITDA declined by four per cent to US$149.3m, having just over doubled the year before. At the trading level, the first-quarter profit improved by 11.5 per cent to US$67.4m and the net interest charge in the period increased by one per cent to US$34.17m, giving a pretax profit 32.3 per cent higher at US$43.5m. At the net attributable level the profit increased by 11.9 per cent to US$44.9m. 

Aggregates shipments in the quarter eased by 2.4 per cent to 34.70Mt (38.25Mst) and the average price improved by 4.6 per cent to US$14.32/t (US$12.99/st) and the aggregates turnover rose by two per cent to US$496.8m. Volumes in California suffered badly from wet weather and flooding during January and February. In the Mid-Atlantic and Southeastern operations solid growth was generally seen. Dispatches rose by in excess of 10 per cent in several important states, but shipments in California declined by more than 10 per cent and deliveries in Texas were only two per cent higher because of unusually wet weather.

The asphalt volume improved by 4.6 per cent to 1.61Mt and the average price eased by 1.6 per cent to US$56.47/t (US$51.23/st), as again the unfavourable weather in California depressed volumes. Ready-mixed concrete deliveries rose by 22.2 per cent to 0.61Mm³ and the average price showed a 3.1 per cent improvement to US$146.5/m³. Ready-mixed concrete volumes grew notably strongly in northern Virginia. The small calcium business improved prices by 6.5 per cent though the tonnage declined by 6.9 per cent.