Vulcan Materials Q1 Results Top Estimates

(RTTNews) - Construction aggregates and materials manufacturer Vulcan Materials Co. (VMC) reported Tuesday a profit for the first quarter compared to a loss last year, reflecting significant asset sale gains, continued margin expansion driven by aggregates demand recovery and revenue growth. Meanwhile, adjusted loss per share from continuing operations came in narrower than analysts' expectations, and quarterly revenues topped their estimates.

"Our aggregates business reported solid growth in the first quarter despite extremely cold weather in most of our markets, and we remain confident in the full year expectations we announced in early February. We continue to experience strengthening demand in each of our end markets and across most of our footprint," Chairman and CEO Don James said in a statement.

The Birmingham, Alabama-based company reported net earnings of $54.0 million or $0.41 per share for the first quarter, compared to a net loss of $54.84 million or $0.42 per share in the prior-year quarter.

Income from continuing operations for the quarter was $54.51 million or $0.41 per share, compared to a loss of $61.62 million or $0.47 per share in the year-ago quarter.

Excluding items, adjusted net loss from continuing operations for the latest quarter was $37.0 million or $0.28 per share.

On average, 12 analysts surveyed by Thomson Reuters expected the company to report a loss of $0.33 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues for the quarter increased to $574.42 million from $538.16 million in the same quarter last year, and topped eight Wall Street analysts' consensus estimate of $572.24 billion by a whisker. Net sales grew 9 percent to $548.50 million from last year.

Aggregates segment total revenue increased 13 percent and aggregates shipments for the quarter improved 6 percent despite abnormally cold weather in most markets. Overall pricing increased 2 percent, and cash gross profit per ton of aggregates improved 8 percent.

The company noted that gross profit margin for the quarter increased 270 basis points from last year, with the operations and sales teams continuing to deliver strong incremental margins.

The company reported a significant gain on sale of property, plant & equipment and businesses of $236.36 million, compared to $4.11 million last year.

Looking ahead, the company said Vulcan-served markets are expected to outperform other markets, led by continued improvement in private construction activity. Leading indicators such as housing starts, nonresidential contract awards and employment continue to show favorable growth trends in Vulcan-served markets.

Additionally, the company expects any shipment delays due to severe winter weather in the first quarter to be recovered during the remainder of the year.

"With the strength of our aggregates reserves positions, our continuing profit enhancements, the divestitures of non-strategic operations, and significant debt reduction, Vulcan remains very well positioned to grow earnings faster than sales during this period of aggregates demand recovery," James added.

VMC closed Monday's regular trading session at $65.01, up $0.12 on a volume of 1.24 million shares.