Vulcan: Uncertainty Weighs on Construction Market

Vulcan Materials Co of Birmingham, AL has reported that in the second quarter of 2020 its Aggregates segment revenues increased from US$1.06 billion in the second quarter of 2019 to US$1.07 billion with higher selling prices offsetting a slight dip in shipments. Aggregate shipments decreased from 57.3 million tons to 56.2 million tons and the average realized unit price in the quarter increased from US$14.07/ton to US$14.50/ton.

Vulcan reports that its Calcium segment generated a gross profit of US$0.67 million on sales of US$1.89 million in the second quarter compared with a profit of US$0.82 million on sales of US$2.00 million in the second quarter of 2019. The average selling price in the latest quarter was US$26.55/ton down from US$27.50/ton in the 2019 period. The segment’s sales volume decreased from 73,000 tons to 71,000 tons.

Tom Hill, Vulcan’s CEO, said, “Certain leading indicators of demand have shown signs of improvement, and our quote activity remains robust. However, our visibility beyond the near-term remains restricted due to the evolving effects of the pandemic. The recent surge in new COVID-19 cases could impact the progress made so far if new restrictions on economic activity are put in place. We believe this uncertainty could continue to weigh on construction activity in the second half of the year, making it difficult to predict the level and timing of shipments.”

Volume 34, Issue 15

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