Vulcan’s cement loss doubles

Vulcan’s cement loss doubles
Published: 03 November 2011

Vulcan Materials’ turnover for the first nine months eased by 1.2% to US$1949.9m, while the EBITDA did increase by 10.2% to US$340.3m. As a result, the trading profit more than quadrupled from US$14.9m to US$69m. However, the net interest charge jumped by 21.8% to US$163.8m, giving a pre-tax loss for the period that was 17.5% lower at US$97.3m. Gross capital investment in the period was 24.5% higher at US$77.3m.  Net debt was 0.2% lower than a year earlier at US$2,669.1m, giving a gearing level of 68.9%.

Vulcan’s overall cement deliveries fell by 10.7% to 0.511Mt (0.57Mst). Inter-group deliveries actually rose by 2.5% to 0.23Mt, but third party sales fell by 19.0% to 0.29Mt. The average cement price achieved came off by 5.7% to US$83.16/t (US$75.44/st) and the turnover dropped by 14.2% to US$52.5m.  The gross loss was more than doubled to US$5.6m in the period under review.   

Turnover from aggregates declined by 3.3% to US$1324.8m, as shipments were down by 4.8% to 98.4Mt (108.46Mst).  The average price, however, improved by 1.3% to US$11.36/t. Volumes in the third quarter were helped by higher infrastructure spending in California, North Carolina and Maryland.  Aggregates prices are expected to improve further in the final quarter of the year.   

Ready-mixed concrete and concrete products saw turnover decline 3.8% to US$281.8m, with ready-mixed concrete deliveries falling by 8.09% to 2.23Mm³, but prices did improve by 6.2% to US$120.83/m³.