Vulcan Materials Company’s VMCearnings and revenues surpassed the Zacks Consensus Estimate in the first quarter of 2018. Revenues and earnings improved year over year, despite adverse weather conditions and higher-than-anticipated energy costs.
Vulcan’s reported adjusted earnings of 44 cents per share in first-quarter 2018, surpassing the Zacks Consensus Estimate of 22 cents by 100%.
Total revenues of $854 million outpaced the Zacks Consensus Estimate of $798.6 million by 7%. The top line increased 9% from the prior-year quarter.
Segments in Detail
Aggregates
Revenues increased 7.6% year over year to $699.7 million. Freight-adjusted revenues rose $33 million to $529 million.
Aggregate shipments (volumes) were up 6% year over year. In the quarter under review, shipments in Arizona, California, Florida and coastal Texas experienced double-digit gains on the back of solid demand growth and the start of some large projects. However, shipment rates lagged in North Texas due to wet weather.
Non-Aggregates
Revenues in the Asphalt Mix segment were $103.8 million, up 8.4%. Asphalt segment gross profit was $246 million, down $8 million year over year. Shipments were in line with the prior-year quarter’s figure, as cold and wet weather in key markets limited paving activity.
Total revenues in the Concrete segment were $100.9 million, up 13.6% year over year. Gross profit was $10.3 million, in line with the prior-year quarter. Shipments increased 3% from the prior-year quarter.
Total revenues in the Calcium segment were $1. 9 million, up 3% from the prior-year quarter. The segment reported gross profit of $547 million, down 24.3% from the prior-year quarter’s tally.
Operating Highlights
Adjusted gross margin of 22% fell 160 basis points (bps) in the first quarter. Also, adjusted EBITDA was up 12% year over year to $168 million.
Selling, Administrative and General expenses were $78 million, down $4 million year over year.