Vulcan Results Down Slightly in Third Quarter

Vulcan Materials Co. announced results for the quarter ended Sept, 30, reporting total revenues of $2,004 billion, versus $2,186 in the third quarter of 2023. Year-to-date, the company is reporting revenues of $5,564 billion versus $5,948 billion for the same period in 2023.

Third quarter segment gross profit was $498 million ($8.63 per ton), and gross profit margin expanded 40 basis points. Cash gross profit per ton improved 10% to $10.89 per ton, despite lower shipments and harsh weather conditions throughout the quarter.  Improvements in unit profitability were widespread across the company’s footprint.

Aggregates shipments decreased 10% as compared to the prior year’s third quarter. Shipments across the Southeast were impacted by significant rainfall in July, followed by numerous hurricanes and severe storms in August and September. The prior year’s third quarter included fewer severe weather events.

The pricing environment remained positive across the footprint. Freight-adjusted selling prices increased 10% as compared to the prior year. Freight-adjusted unit cash cost of sales was negatively impacted by lower volume and challenging weather-affected operating conditions; freight-adjusted cash cost of sales dollars remained flat compared to the prior year.

  • Asphalt segment gross profit was $60 million, and cash gross profit was $72 million, a 12% improvement over the prior year. Shipments increased slightly as compared to the prior year, and price improved 6%. 
  • Concrete segment gross profit was $7 million, and cash gross profit was $17 million.  The prior year’s third quarter included results from the previously divested concrete assets in Texas, which accounted for the majority of the year-over-year decline in cash gross profit.
NOTD TomHill 200
Tom Hill

Tom Hill, Vulcan Materials’ chairman and chief executive officer, said, “Results and activities in the third quarter evidence the consistent execution of our two-pronged strategy to generate durable growth.  We continue to enhance our core through expansion of our industry-leading aggregates cash gross profit per ton, which increased 10 percent in the third quarter and has grown by double-digits for eight consecutive quarters.  We also recently announced the acquisition of Wake Stone Corp., a leading pure-play aggregates producer, that will expand our reach in high-growth geographies in the Carolinas. Our Vulcan Way of Selling and Vulcan Way of Operating disciplines remain fundamental to compounding profitability across our franchise and successfully integrating new operations.” 

Regarding the company’s current year outlook, Hill said, “While significant weather disruptions have impacted construction activity through the first nine months of the year, overall demand fundamentals continue to underpin long-term growth. The pricing environment remains positive and we continue to execute well. Given the decline in shipments to date and continued weather events so far in the fourth quarter, we now expect full-year Adjusted EBITDA of approximately $2 billion.”

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