Vulcan Materials’ aggregate sales rose year-on-year by 24.5% to US$1.4 billion in the second quarter of 2022.
Gross profit within the U.S. business’s aggregates segment in the quarter reached $402 million, an 8% ($28.6 million) increase over Q1 2021. Cash gross profit per ton increased 2% to $7.99.
Aggregate shipments grew 9% in the second quarter compared to April, May and June 2021. Vulcan says this increase reflects shipment contribution from acquisitions and construction activity consistent with its expectations.
Vulcan Materials’ total Q2 2022 revenues were up 43.6% to $1.95 billion compared to the same period of the previous year. Average selling prices increased in each product line, helping to offset inflationary pressures.
“Our teams continued to execute well and delivered another quarter of solid earnings growth amidst a challenging backdrop,” said Tom Hill, chairman and CEO of Vulcan. “We are well on our way to delivering another year of double-digit earnings growth.”
Hill noted that Vulcan Materials had increased its aggregates gross profit by 11% during the trailing 12 months despite ongoing inflation and other external headwinds. “Robust growth in aggregates pricing and a relentless focus on operating disciplines will help us carry this momentum forward,” he stressed.
Hill continued: “Our asphalt pricing actions, which began late last year, are increasingly offsetting sharply higher liquid asphalt costs, and we remain focused on growing our gross profit in our asphalt segment.
“In concrete, leading indicators for private nonresidential construction activity and a favourable pricing environment will support earnings growth in 2022.”
Hill said Vulcan Materials is updating its full-year adjusted EBITDA guidance range to reflect the considerable pricing momentum in its aggregates business, as well as higher-than-expected energy-related cost inflation that is currently impacting each of the company’s segments. “Additionally, our outlook now reflects the previously disclosed impact of the closure of our Mexico operations for the balance of 2022,” he concluded.
