Vulcan’s profit margins increase as markets recover

Vulcan’s profit margins increase as markets recover
Published: 02 August 2016

Vulcan Materials' first-half turnover rose by 12.1 per cent to US$1711.6m and EBITDA advanced by 39.7 per cent to US$419.3m. The trading profit expanded by 69.4 per cent to US$378.7m and after a net interest charge 54.1 per cent lower at US$67.1m, the pretax profit jumped from US$18.9m to US$211m. The net attributable earnings line went from US$8.5m to US$142.7m. The net debt was reduced by 4.1 per cent to US$1890.8m, giving a gearing level of 42.2 per cent compared with 46.6 per cent a year earlier.

The total aggregates volume advanced by 8.7 per cent to 79.81Mt (87.97Mst) while the freight-adjusted sales price improved by eight per cent. The second-quarter results reflect continued underlying strong profit growth in spite of wet weather and a lower-than-expected number of major project starts.

Ready-mixed concrete deliveries were badly affected by the wet weather in Virginia and Maryland during the second quarter, but overall volumes for the six months improved by 6.4 per cent to 1.07Mm³ and the average price was three per cent ahead at US$153.41/m³.  Sales of asphalt mix were 0.8 per cent lower at 3.82Mt, but the average price was off by 2.8 per cent at US$58.72/t. The modest calcium business increased volumes by 3.2 per cent, but prices eased by 0.6 per cent.