North / South America
Vulcan Materials 2Q loss swells, shares slide
Aug, 01 2012
(Birmingham, Alabama) -- Vulcan Materials Co., the biggest U.S. producer of gravel and sand used for construction, said Thursday that its second-quarter loss swelled on weaker volume in several key regions and higher restructuring costs.
Shares dropped more that 10 percent.
The company posted a loss of $18.3 million, or 14 cents per share, for the April-June period compared with a loss of $8.1 million, or 6 cents per share, a year earlier.
Revenue slipped 1 percent to $694.1 million. Costs for restructuring rose to $4.6 million from $1.8 million a year earlier.
Analysts polled by FactSet expected earnings of 6 cents per share on revenue of $718.8 million.
Vulcan said it's encouraged by the passage of a new highway bill in late June, which is expected to provide states with more money to move forward on infrastructure projects.
A government report earlier this month said a surge in homebuilding pushed U.S. construction spending up by the largest amount in five months, the latest indication that the housing sector is slowly recovering. Construction spending rose 0.9 percent in May from April. It was the second straight monthly increase and the biggest percentage gain since December.
Still, the level of spending is roughly half of what economists consider to be healthy.
Its shares fell $4.46, or 10.3 percent, to $37.83 in trading Thursday.
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