Thanks to the initial consolidation of Florida Rock, Vulcan Materials’ first half turnover increased by 20.8 per cent to US$1,737.7m. The EBITDA did improve by 3.9 per cent to US$498.8m, but the pre-tax profit dropped by 34.1 per cent to US$226.0m. Capital investment in the period increased by 4.8 per cent to US$246.0m.
The turnover from aggregates increased by 4.4 per cent to US$1,215.3m, but the tonnage declined by 5.3 per cent to 95.52Mt (105.29Mst) as the average price increased by 8.3 per cent to US$11.09/t Asphalt sales declined by 0.4 per cent to 4.2Mt, while higher raw material costs boosted the average price by 5.7 per cent.
Ready-mixed concrete deliveries were boosted by the inclusion of Florida Rock and trebled to 2.54Mm³ and prices rose by 3.3 per cent. Vulcan sold 0.53Mt of cement in the quarter, at an average price of US$107.27/t (US$98.41/st) which represented an external turnover of US$60.2m.
So far this year, Vulcan has acquired four quarries in California, two in Virginia and one in Illinois as additional raw material reserves in Texas and North Carolina. Aggregates pricing continues to improve and for the full year an increase of around eight per cent is expected, but the tonnage is expected to decline by between two and five per cent.