Vulcan announces record operating earnings for 2007

Vulcan announces record operating earnings for 2007
Published: 14 February 2008

Vulcan Materials Company today announced that 2007 full year sales, net cash provided by operating activities, operating EBITDA were at record levels. Consolidated net sales were US$3.1bn in 2007, an increase of two per cent from the prior year’s level. Net cash provided by operating activities of $708m increased 22% from the 2006 level of US$579m. Operating earnings for 2007 were US$714m, up three per cent from the 2006 level of US$695m. EBITDA in 2007 was $982m, up three per cent from the $950m reported in 2006.

Don James, Vulcan’s Chairman and Chief Executive Officer, stated, “Our business generated improved results in 2007 despite weaker demand for our products. The sharp downturn in residential construction activity was only partially offset by increased levels of highway construction and nonresidential construction. The pricing environment for aggregates remained favorable during 2007. The average selling price for aggregates increased 13 percent in 2007 despite a nine per cent decline in aggregates shipments.

“The past year also was highlighted by Vulcan’s purchase of Florida Rock Industries on November 16, 2007. This acquisition, which includes significant aggregates reserves in attractive markets, continues our long-term strategy to position our company in markets where reserves are limited and where demand for aggregates is expected to grow at above-average rates. The short time that Vulcan owned Florida Rock during this seasonally weak period, coupled with the one-time earnings effects from the transaction, resulted in the acquisition providing limited contribution to 2007 EBITDA. Integration of this acquisition is proceeding smoothly and according to our plans.”