Vulcan Materials Co. has revised its 2008 earnings reported earlier this month to show a US$253m impairment charge in the fourth quarter, which drags its profit into the negative.
After the impairment charge related to its cement business, the US-based aggregates company said its net earnings for the year were reduced by US$233m, or US$2.10 per diluted share. That led to a loss of US$4.4m for the year. The firm reported net earnings of US$450.9m in 2007.
Vulcan said the charge was due to disruptions in the credit and equity markets, weak construction activity and the global recession, said a news release.
The US$253m was goodwill allocated to Vulcan’s cement business, which includes Florida Rock Industries, a competitor it acquired in 2007 for US$4.6bn. A goodwill impairment charge is an intangible asset that measures a part of the company’s growth.
Vulcan said the charge does not affect its liquidity, cash flows, cash earning or debt convenants and will not affect the operation of its cement business, said the release.