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Vulcan Aggregates Revenue Up First Quarter


Vulcan Materials Co. posted a net loss of 42 cents per share in the first quarter of 2013, greater than the prior-year quarter loss of 40 cents per share. The Zacks Consensus Estimate for the quarter is a loss of 36 cents per share.

Total revenue of $538.2 million surpassed the Zacks Consensus Estimate of $514 million by 4.7 percent. Total revenue also increased 0.4 percent from the prior-year quarter, driven by price increase in the aggregates segment and volume growth in ready mix concrete and cement.

Top-line growth mostly benefitted from the increase in private construction activity, especially residential. Total revenue comprised $504.6 of net sales and $33.6 million of delivery revenues. Adjusted EBITDA was $26.0 million, down 44.7 percent from the prior-year quarter. Selling, administrative and general (SAG) costs declined 0.3 percent from the prior-year quarter to $64.7 million attributable to Vulcan’s cost-saving efforts.

Aggregates revenues rose 0.3 percent to $325.4 million (including inter-segment sales) in the quarter as gains from price increases were partially offset by volume declines and strong year-ago comparisons, which included favorable weather conditions in 2012. Aggregates shipments (volumes) declined 5.0 percent year-over-year in the quarter. Average sales price increased 5 percent due to improvement in most markets.

The company is witnessing a growing demand for private construction, including residential housing starts and contract awards for non-residential buildings, following a steady recovery in the overall housing industry. Due to growth in housing construction activity, Vulcan saw some shipment growth in the states of Arizona, California and Florida, with each state growing a double-digit percentage increase in the quarter.

Revenues of the concrete and cement segment witnessed a year-over-year increase on the back of volume growth and price increase. The asphalt segment witnessed decline in revenues during the first quarter of 2013 due to weak volume and price dip.