Vulcan Materials’ second quarter (Q2) net earnings increased to $160m, compared to $112m over the same period for 2017.
The company’s adjusted earnings from continuing operations were $1.23 per diluted share versus $0.90 per share in the prior year’s second quarter. Adjusted EBITDA increased 13% to $325 million.
According to further published figures, Vulcan Materials posted 11% growth in gross profit – led by a 13% increase in its core aggregates segment. Aggregates shipments increased 15% (11% on a same-store basis) and aggregates average selling price, adjusted for mix, rose 3% over the prior year. In addition, a 30% increase in diesel cost/gallon lowered aggregates segment gross profit by $7m. However, the second quarter aggregates segment gross profit increased to $283m and cash gross profit, on a same-store basis, was $6.55/ton. Year-to-date, the flow-through rate on same-store incremental segment sales excluding freight and delivery was 43% or 56% excluding the impact of higher diesel fuel costs.
Tom Hill, chairman and chief executive officer, says: “We remain on track with our full year expectations. Vulcan-served markets are experiencing stronger growth in demand than other markets, and higher public funding for transportation infrastructure is now converting to higher shipments of aggregates. Apart from geographic mix impacts, our pricing momentum continues to strengthen, including in our backlogged work. Our operating disciplines remain strong, and margins should continue to improve as we turn the corner on costs related to last year’s storms.
“We expect the strong aggregates shipment growth seen in the second quarter to continue for the balance of the year. We now project full year same-store shipment growth of between 7 and 9%, albeit at a lower-priced geographic mix. We reiterate our full-year expectations for 2018 earnings from continuing operations of between $4 and $4.65/diluted share and Adjusted EBITDA of between $1.15 and $1.25 billion.”