Total revenues, gross profit and aggregate shipments were down in the first quarter at Vulcan Materials Co., although the company made some gains in its aggregate business during the first three months of the year.
The first-quarter gross profit in Vulcan’s aggregate business was $303 million. Cash gross profit per ton improved 10 percent in the aggregate business to $8.86 per ton despite lower shipments, the company says. Unfavorable weather conditions throughout most of the quarter were a contributing factor.
Still, Vulcan says improvements in unit profitability related to aggregates were widespread across its footprint, resulting from continued pricing momentum and operational execution.
Additionally, Vulcan says freight-adjusted selling prices increased 10 percent versus the prior year, with all markets realizing year-over-year improvement.
“Our teams’ solid execution helped us overcome challenging weather conditions throughout much of the first quarter,” says Tom Hill, chairman and CEO of Vulcan. “Margins expanded despite lower aggregates shipments, demonstrating the durability of our aggregates business and its attractive compounding growth characteristics.
“A consistent focus on our strategic disciplines, coupled with continued pricing momentum reinforces our confidence in our full year outlook and our ability to deliver another year of double-digit earnings growth and strong cash generation,” Hill adds.
