The industry’s public producers shared their second-quarter financial reports as P&Q went to press, with several detailing how weather impacted their performances. Ongoing pricing growth, however, propelled some to earnings gains despite a series of second-quarter setbacks.
Here’s a company-by-company rundown of second-quarter outcomes.
Vulcan Materials
Vulcan Materials Co. reported increases in gross profit, adjusted EBITDA and aggregate pricing in the quarter. Total revenue and aggregate shipments were down in the quarter, though, with the company attributing the decreases to challenging weather.
“Our aggregates-led business delivered another quarter of earnings growth and margin expansion,” says Tom Hill, Vulcan Materials chairman and CEO. “Even with significant rainfall disrupting construction activity and operating efficiencies, our aggregates cash gross profit per ton increased 12 percent. These results demonstrate our consistent execution and the durable characteristics of our business.
“The construction environment remains supportive of continued aggregates price growth, and our focus remains on compounding aggregates unit profitability to drive earnings growth and strong cash generation,” Hill adds.
Martin Marietta
For the second consecutive quarter, Martin Marietta experienced decreases in total revenue, gross profit and aggregate shipments, as well as an increase in gross profit related to aggregates.
Despite these setbacks, Martin Marietta’s pricing growth in aggregates continued from the first quarter. The company reported an 11.6 percent increase in aggregate pricing in the quarter.
Second-quarter total revenue and aggregate shipments each decreased by 3 percent – down to $1.76 billion and 53 million tons, respectively. Martin Marietta says shipments from acquired operations were more than offset by poor weather, especially in Texas and its central division. Softening warehouse, office and residential demand were also factors.
“Martin Marietta experienced a series of factors in the second quarter impacting product shipments,” says Ward Nye, Martin Marietta chairman and CEO. “Historic precipitation in Texas and in parts of the Midwest, together with ongoing restrictive monetary policy, curtailed volumes for the three-month period. While we view these circumstances as temporary, they nonetheless negatively impacted our financial results.”
CRH
Total revenues were down 1 percent in the second quarter at CRH, whose quarterly net income increased 8 percent to $1.3 billion.
“We are pleased to report another period of further profit growth and margin expansion for CRH,” says Albert Manifold, CRH chief executive. “The execution of our differentiated solutions strategy continues to deliver robust financial performance, while the strength of our balance sheet and relentless focus on the disciplined allocation of our capital enables us to capitalize on the opportunities we see for further growth and value creation.”
Holcim
Net sales were down 1.6 percent in the second quarter at Holcim, although the company made an 8.2 percent gain in recurring EBIT.
The company also says net sales of aggregates around the world were down 4.2 percent in the first half of the year. Holcim’s recurring EBIT of aggregates is up 4.6 percent in that time frame.
Additionally, Holcim says its North American business reached a new level of profitability in the first half, with an increase during the first six months in recurring EBIT margin of 240 basis points to 19.4 percent. Holcim says strong market fundamentals are in place, with the company having secured more than 100 infrastructure projects between 2023 and 2026.
Heidelberg Materials
Heidelberg Materials’ Dominik von Achten expressed optimism about the second half of 2024 upon his company releasing its second-quarter results.
As Heidelberg Materials describes, it “delivered a good performance in the second quarter” despite revenue declining slightly compared with the prior-year period.
“Especially our strong development in North America has contributed to increasing our result and margin in the second quarter again despite the continued slight decline in volumes,” says von Achten, chairman of the managing board at Heidelberg Materials. “We remain confident about the second half of the year.”
