Vulcan’s Hill Look Ahead

RR050620 Hill.Vulcan

Aug. 4. 2022 – In its just-released second-quarter report Vulcan Materials’ Chairman and Chief Executive Officer Tom Hill looked into his crystal ball, noting, “We are updating our full-year Adjusted EBITDA guidance range to reflect the considerable pricing momentum in our aggregates business as well as higher than expected energy-related cost inflation that is currently impacting each of our segments. Additionally, our outlook now reflects the previously disclosed impact ($80 to $100 million) of the closure of our Mexico operations for the balance of 2022.” 

Hill is seeing a freight-adjusted price increase of 9 to 11% ($14.87 per ton in 2021) for its Aggregates division. Hill continued, “Our ability to grow our aggregates unit profitability consistently during the last two years of pandemic-related disruptions differentiates us from the rest of our industry. These results demonstrate the resiliency of our business and our ability to capitalize on changes in the macro environment.  We are positioned in markets that will continue to outperform other parts of the country, from a demand perspective, both in the near-term and longer term, and we expect both the favorable pricing dynamics and our strong execution to lead to attractive growth in aggregates unit profitability in 2022 and beyond.”

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