Vulcan Materials, America’s biggest construction aggregates producer, is poised to leverage “attractive growth in aggregates unit profitability” after seeing its first-quarter aggregates sales rise 25% year-on-year to US$1.121 billion ($894.9mn Q1 2021).
Gross profit within Vulcan’s aggregate segment in the first quarter reached $243 million ($4.58 per ton), a 9% ($19 million) increase over Q 1 2021. Cash gross profit per ton reached $6.53 in the quarter.
Aggregate shipments also grew 14% in January, February and March compared to the same three months of 2021, consistent with the company’s forecast and the benefit of more typical weather in certain markets.
“Our markets are positioned to continue to outperform other parts of the country, and our industry-leading aggregates focus will continue to drive substantial value,” said Tom Hill, Vulcan’s chairman and CEO.
“Growing our aggregates unit profitability consistently during the last two years of pandemic-related disruptions demonstrates the resiliency of our business and our ability to capitalise on changes in the macro environment. We expect the favourable pricing dynamics and our strong execution to lead to attractive growth in aggregates unit profitability in 2022 and beyond.”
Vulcan says its total Q1 2022 revenues increased 44% to $1.541 billion while average selling prices increased in each product line, helping to offset inflationary pressures.
