Vulcan Announces Third Quarter 2016 Results

• Total revenues increased $257 million, or 8 percent, to $3.58 billion
• Gross profit increased $242 million, or 31 percent, to $1.02 billion 
• Aggregates segment sales increased $297 million, or 11 percent, to $2.96 billion, and aggregates freight-adjusted revenues increased $266 million, or 13 percent, to $2.29 billion
  • Shipments increased 5 percent, or 8 million tons, to 183 million tons
  • Freight-adjusted sales price increased 8 percent
  • Segment gross profit increased $212 million, or 31 percent, to $894 million
• Asphalt, Concrete and Calcium segment gross profit improved $30 million, collectively
• SAG increased $35 million, or 40 basis points as a percentage of total revenues
• Net earnings were $371 million, an increase of $201 million, or 118 percent
• Adjusted EBIT was $697 million, an increase of $207 million, or 42 percent
• Adjusted EBITDA was $981 million, an increase of $215 million, or 28 percent
• Earnings from continuing operations were $2.83 per diluted share versus $1.32 per diluted share 
  • These results include gains on sale of assets and recovery from business interruption claims, as well as charges related to debt refinancing, impairment of leased property, certain charges recorded in Other Operating Expense, business development activities, restructuring and certain income tax items 
  • Excluding these items, earnings from continuing operations were $2.92 per diluted share versus $1.73 per diluted share

Segment Results

Aggregates

As noted in late September at the Company's Aggregates Day, a noticeable slow-down in trailing twelve month construction starts in March, the timing of certain large projects, and weather patterns led to highly variable third quarter shipment results across Vulcan-served markets.  Arizona, Florida, Georgia, and North Carolina saw shipment increases of between 12 and 21 percent in the third quarter. In contrast, California, Illinois, and Texas experienced shipment declines of between 16 and 21 percent versus the prior year's third quarter.  Weather and other factors impacted shipments most severely during the month of August, with the daily rate of total shipments declining 8 percent from 2015 levels.  During August, daily shipment rates in Texas fell over 30 percent relative to the prior year, shipments in Illinois fell over 20 percent, and shipments in Louisiana fell almost 40 percent. 

For the twelve months ended September 30, shipments rose 5 percent over the comparable prior period.  Despite these recent gains, demand for aggregates remains well below levels consistent with demographic growth in the U.S.  The Company believes conditions remain in place for a sustained, multi-year recovery in demand for aggregates, although quarter-to-quarter trends may vary significantly.

For the quarter, freight-adjusted average sales price for aggregates increased 7 percent, or $0.79 per ton, versus the prior year.  On a trailing twelve months basis, pricing in all of the Company's major markets has increased versus the prior year's comparable period.  The overall pricing climate remains favorable as visibility to a sustained recovery improves and as construction materials producers stay focused on earning adequate returns on capital.

Third quarter unit cost of sales in the Aggregates segment increased 5 percent versus the prior year's third quarter.  Excluding the benefits of lower unit costs for diesel fuel, unit costs were approximately 6 percent higher in the quarter, due to reduced fixed cost absorption and other cost effects of lower volumes.  For the trailing twelve months, unit cost of sales, excluding the impact of lower diesel costs, was essentially flat. 

Aggregates segment unit margins continued to increase, including in key markets challenged by recent weakness in shipping rates.  Gross profit per ton increased $0.44, or 9 percent, from the prior year's third quarter.  On a trailing twelve months basis, unit gross profit has increased 25 percent, to $4.89 per ton, while unit cash gross profit has increased 19 percent to $6.17 per ton. 

For the quarter, the Company's Aggregates gross profit flow-through rate was strong due to solid price growth and a continuing commitment to plant-level cost controls and operating disciplines.  Because quarterly results can vary significantly due to seasonality and other factors, the Company encourages investors to also consider longer-term trends.  On a trailing twelve months basis, this flow-through rate was 80 percent and has consistently exceeded the Company's stated goal of 60 percent since volumes began to recover in the second half of 2013.

Asphalt, Concrete and Calcium

In the third quarter, Asphalt segment gross profit was $33 million versus $30 million in the prior year.  Volumes decreased 11 percent due to the same factors impacting the Aggregates segment noted above.  However, solid sales and operating disciplines as well as effective materials margin management offset the drop in volume. 

Concrete segment gross profit was $9 million in the quarter compared to $10 million in the prior year period.  Sales volumes were flat versus the prior year as higher volumes in Arizona and Georgia helped offset lower volumes in Maryland, Texas and Virginia.  Unit gross profit was slightly lower versus the prior year period due primarily to unfavorable impact from geographic mix. 

In the third quarter, the Company's Calcium segment reported gross profit of $0.8 million, in line with the prior year.

Selling, Administrative and General (SAG)

Selling, administrative and general (SAG) expenses increased $5 million versus the prior year.  The year-over-year increase resulted primarily from spending for initiatives to improve business processes and investments to enhance sales initiatives.  For the year, SAG expense should approximate $310 million.

Credit Position and Capital Allocation

At the end of the third quarter, total debt outstanding was approximately $2 billion, including $235 million of floating-rate borrowings.  The quarter end cash balance was $135 million.

As of September 30, cash capital expenditures were $287 million, including $84 million invested in the purchase of two replacement ships to transport aggregates from the Company's quarry in Mexico, as well as new site development and investment in other growth opportunities.  For the full year, core capital expenditures are expected to be approximately $275 million.  Internal growth capital investments, excluding acquisitions, are expected to be approximately $125 million.

During the first nine months of 2016, the Company returned $241 million to shareholders through dividends and share repurchases.  Year-to-date, the Company repurchased approximately 1.4 million shares at an average cost of $113.18 per share.

Demand and Earnings Outlook

Regarding the Company's outlook, Mr. Hill stated, "The strong fundamentals of our aggregates-focused business and the outstanding improvement in our core profitability have led to strong earnings growth through the first nine months of 2016 despite slower than expected volume growth.  Unit profitability continues to improve and incremental margins remain strong across our businesses.  The core drivers of a continuing recovery in shipments remain firmly in place, with higher levels of publicly funded construction activity just beginning to join the ongoing recovery in private demand.  The pricing environment remains favorable. Daily shipment rates in October have exceeded prior year levels.  Construction starts in Vulcan-served markets strengthened in August and September after weakening for several months.  Although it is too soon to issue firm guidance, at this point we would expect to see broad-based volume and pricing growth accompanied by continued margin expansion in 2017."

Conference Call

Vulcan will host a conference call at 9:00 a.m. CT on November 2, 2016.  A webcast will be available via the Company's website at www.vulcanmaterials.com.  Investors and other interested parties in the U.S. may also access the teleconference live by calling 888-208-1814 approximately 10 minutes before the scheduled start.  International participants can dial 719-785-1764.  The conference ID is 9866359.  The conference call will be recorded and available for replay at the Company's website approximately two hours after the call.

Vulcan Materials Company, a member of the S&P 500 Index, is the nation's largest producer of construction aggregates, and a major producer of other construction materials.

FORWARD-LOOKING STATEMENT DISCLAIMER
This document contains forward-looking statements.  Statements that are not historical fact, including statements about Vulcan's beliefs and expectations, are forward-looking statements. Generally, these statements relate to future financial performance, results of operations, business plans or strategies, projected or anticipated revenues, expenses, earnings (including EBITDA and other measures), dividend policy, shipment volumes, pricing, levels of capital expenditures, intended cost reductions and cost savings, anticipated profit improvements and/or planned divestitures and asset sales.  These forward-looking statements are sometimes identified by the use of terms and phrases such as "believe," "should," "would," "expect," "project," "estimate," "anticipate," "intend," "plan," "will," "can," "may" or similar expressions elsewhere in this document.  These statements are subject to numerous risks, uncertainties, and assumptions, including but not limited to general business conditions, competitive factors, pricing, energy costs, and other risks and uncertainties discussed in the reports Vulcan periodically files with the SEC.

Forward-looking statements are not guarantees of future performance and actual results, developments, and business decisions may vary significantly from those expressed in or implied by the forward-looking statements.  The following risks related to Vulcan's business, among others, could cause actual results to differ materially from those described in the forward-looking statements: those associated with general economic and business conditions; the timing and amount of federal, state and local funding for infrastructure; changes in Vulcan's effective tax rate that can adversely impact results; the increasing reliance on information technology infrastructure for Vulcan's ticketing, procurement, financial statements and other processes could adversely affect operations in the event such infrastructure does not work as intended or experiences technical difficulties or is subjected to cyber attacks; the impact of the state of the global economy on Vulcan's businesses and financial condition and access to capital markets; changes in the level of spending for private residential and private nonresidential construction; the highly competitive nature of the construction materials industry; the impact of future regulatory or legislative actions including those relating to climate change, greenhouse gas emissions or the definition of minerals; the outcome of pending legal proceedings; pricing of Vulcan's products; weather and other natural phenomena; energy costs; costs of hydrocarbon-based raw materials; healthcare costs; the amount of long-term debt and interest expense incurred by Vulcan; changes in interest rates; volatility in pension plan asset values and liabilities which may require cash contributions to the pension plans; the impact of environmental clean-up costs and other liabilities relating to existing and divested businesses; Vulcan's ability to secure and permit aggregates reserves in strategically located areas; Vulcan's ability to manage and successfully integrate acquisitions; the potential of goodwill or long-lived asset impairment; and other assumptions, risks and uncertainties detailed from time to time in the reports filed by Vulcan with the SEC. All forward-looking statements in this communication are qualified in their entirety by this cautionary statement.  Vulcan disclaims and does not undertake any obligation to update or revise any forward-looking statement in this document except as required by law.

										Table A
Vulcan Materials Company
and Subsidiary Companies
						(in thousands, except per share data)
				Three Months Ended				Nine Months Ended
Consolidated Statements of Earnings				September 30				September 30
(Condensed and unaudited)				2016		2015		2016		2015
Total revenues				$1,008,140		$1,038,460		$2,719,693		$2,564,896
Cost of revenues				703,931		747,170		1,958,581		1,961,292
Gross profit				304,209		291,290		761,112		603,604
Selling, administrative and general expenses				76,311		71,390		235,460		207,350
Gain on sale of property, plant & equipment
and businesses				2,023		799		2,934		7,423
Business interruption claims recovery				690		0		11,652		0
Impairment of long-lived assets				0		0		(10,506)		(5,190)
Restructuring charges				0		(448)		(320)		(4,546)
Other operating expense, net				(3,535)		(8,045)		(23,629)		(17,201)
Operating earnings				227,076		212,206 Werbung Mehr Nachrichten zur Vulcan Materials Co Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 11:24 - ARIVA.DE Redaktion Aktienmarkt: Kurs der Infineon-Aktie im Plus (31,92 €) 11:22 - ARIVA.DE Redaktion Munich Re-Aktie verliert 0,95 Prozent (426,50 €) 02:00 - PR Newswire BlackRock Throgmorton Trust Plc - Total Voting Rights SolarBank    Wie die Revolution der sauberen Energie eine solide Investitionsmöglichkeit bieten könnte weiterlesen» Anzeige wo-site-teaser-box-16755_site-teaser-box_2024-04-25_09%253A00%253A00_2024-04-26_09%253A00%253A59