Rock Products

JUN 2018

Rock Products is the aggregates industry's leading source for market analysis and technology solutions, delivering critical content focusing on aggregates-processing equipment; operational efficiencies; management best practices; comprehensive market

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6 • ROCK products • June 2018 IN THE KNOW Vulcan Materials Co. announced that first-quarter earnings from continuing operations increased 23 percent year- over-year to $53 million on a 9 percent increase in total revenues. Gross profit was $159 million, led by a 7 percent increase in Aggregates segment gross profit to $148 million. Asphalt, Concrete and Calcium segment gross profit was $11 million, as delayed work and higher input costs negatively impacted Asphalt margins. Selling, administrative, and general expenses declined $4 million to $78 million. In the company's core Aggregates seg- ment, unit margins improved despite higher energy costs and shipment delays due to unusually cold and wet weather in certain markets. On a same- store basis, the aggregates business delivered cash gross profit per ton of $5.33, a record for the first quarter. This $0.19 per ton increase over the prior year period was achieved despite an $0.11 per ton increase in diesel. Same-store shipments grew 1 per- cent for the quarter, with a 7 percent increase in daily shipment rates in March as weather conditions improved. Adjusted for mix, freight-adjusted aver- age selling price rose 3 percent over the prior year. Same-store total cost of rev- enues per ton declined year-over-year despite the aforementioned weather and energy cost headwinds as well as the planned shutdown of certain large production facilities for maintenance ahead of the construction season. Tom Hill, chair- man and chief executive officer, said, "Our first quarter results represent a solid start to the year and were con- sistent with our Vulcan Achieves First-Quarter Success on Aggregates Strength FAST FACT In the company's core Aggregates segment, unit margins improved despite higher energy costs and shipment delays. Tom Hill

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