Fourth-quarter aggregate sales at Vulcan Materials totaled $1.15 billion in the fourth quarter of 2021, a 20 percent growth over the fourth quarter of 2020.
The company’s aggregate sales for all of 2021 totaled $4.34 billion – a 10 percent increase over 2020’s total.
Gross profit within the aggregate segment in the fourth quarter increased 18 percent to $326 million versus 2020’s fourth quarter. Cash gross profit per ton improved 6 percent from 2020, up to $7.41 per ton.
According to Vulcan, which is the nation’s largest aggregate producer, its year-over-year earnings improvement was widespread throughout the company due to volume and pricing growth, as well as cost control.
Total aggregate shipments increased 13 percent, reflecting improving demand across all end-market segments, as well as the benefit of favorable weather in certain markets during November and December, Vulcan says. As demand visibility improved, the pricing environment continued to strengthen. The company says the rate of pricing growth improved sequentially each quarter this year.
“Our teams finished the year strong, despite ongoing challenges from inflationary pressures and labor constraints,” says Tom Hill, Vulcan chairman and CEO. “We expanded our industry-leading unit profitability again in the fourth quarter and for the full year by continuing to focus on our operating disciplines and taking pricing actions where necessary to mitigate these headwinds.”
Hill is optimistic about what 2022 has in store.
“With a strong finish in the fourth quarter, we carry considerable momentum into the new year,” Hill says. “Our markets are poised to outperform other parts of the country as demand continues to improve, and our industry-leading unit profitability increases with each passing quarter. We will continue to drive substantial value through the combination of our legacy business and the acquisition of [U.S. Concrete].
“We expect the favorable pricing dynamics that improved throughout 2021 to be even better in 2022 and lead to attractive growth in aggregates unit profitability,” Hill adds. “Growing our aggregates unit profitability consistently during the last two years of pandemic-related disruptions demonstrates the resiliency of our business and our ability to capitalize on any changes in the macro environment.”
