Feb. 18, 2020 – Vulcan Materials just reported full-year revenues of $4.9 billion for 2019, up 12% as compared to the prior year, and net earnings of $618 million, an increase of 20%. Regarding the company’s outlook, Tom Hill, chairman and chief executive officer stated, “In 2020, we expect another year of strong earnings growth. Vulcan-served markets should continue to benefit from public construction demand, led by higher levels of highway funding in our key states. We anticipate residential construction in our markets to continue strengthening after experiencing some softness in certain markets during the second half of 2019. Private nonresidential construction activity should also improve as leading indicators point to positive growth in 2020. Demand fundamentals, including population and employment growth, continue to support longer-term growth in residential and nonresidential construction. We are seeing a positive pricing environment driven by shipment momentum in private demand and visibility of public demand. Our focus remains the same – compounding our unit margins through all parts of the cycle and improving our returns on capital.”
Management expectations for 2020 include:
- Aggregates shipments growth of 2 to 4%.
- Aggregates freight-adjusted price increase of 4 to 6%.
- 10 to 15% growth in Asphalt, Concrete and Calcium gross profit, collectively.