Vulcan Materials Co. announced new division leadership and changes to its organizational structure that it said will further enhance the company's ability to serve customers and increase profitability while also continuing to capture strategic growth opportunities across its footprint. The new structure, effective Jan. 1, 2015, places key leaders within the organization in seven operating divisions.
The company's divisions will be as follows: the Western Division, comprising the company's businesses in California; the Mountain West Division, comprising Arizona and New Mexico; the Southwest Division, comprising the company's businesses in Texas and Oklahoma; the Central Division, comprising Arkansas, Tennessee, Kentucky and Illinois; the Mideast Division, comprising North Carolina, Virginia, Maryland, Pennsylvania and Delaware; the Southern and Gulf Coast Division, comprising Alabama, Mississippi and Louisiana; and the Southeast Division, comprising Florida, Georgia and South Carolina.
Senior Vice President Stan Bass will continue his leadership responsibilities for both the Western Division and the newly formed Mountain West Division. David Pasley, formerly vice president and general manager for Central California, has been appointed president of Mountain West and will report to Stan Bass.
Jeff Lott, formerly vice president and general manager, Texas, will lead the company's Texas and Oklahoma businesses as president of the Southwest Division. David Clement will serve as president of the Central Division, continuing in his leadership role for the company's businesses in Illinois, Kentucky, Tennessee and Arkansas.
Kim Duke, formerly vice president and general manager of the company's Florida business, will serve as president of the Mideast Division. Jason Teter, formerly vice president, business development, will serve as president of the Southern and Gulf Coast Division. David Grayson, formerly vice president and general manager of the company's Georgia business, will serve as president of the Southeast Division. These individuals will report to Vulcan's President and Chief Executive Officer Tom Hill.
"We are excited about our company's current performance and the opportunities ahead," said Hill. "The structure announced today is a natural evolution of Vulcan's streamlined organization and enables us to pursue growth and profitability while further leveraging the actions we have undertaken since 2012 to consolidate our back office functions. Our flat organizational structure will be built on existing support groups and will continue to emphasize local, 'close-to-the-market' leadership, as well as active collaboration across geographies. We will provide to our customers the best of our local presence and our company-wide capabilities."
Since 2012, Vulcan has increased annual run-rate profitability, dramatically reduced debt and strategically redeployed capital, while also enhancing the company's industry-leading position in cash gross profit per ton. "Building on these actions," said Hill, "our new organizational structure will enable us to move into a new period of strong, profitable growth and enhance our position as the leading aggregates producer in the United States."
Further commenting on the leadership team, Hill said, "Vulcan has strong leadership throughout the company. We have emerged from the industry downturn as an even stronger company, which is a credit to the skill, commitment and resilience of all of our people. I am confident that our division presidents and their teams will deliver excellent results and take our businesses to new heights. The changes announced today will enhance our ability to take advantage of the significant growth in volume, price and operating efficiencies that we anticipate over the next several years, as we also continue to grow our business strategically. I look forward to working closely with our new team and all of our outstanding employees as we continue to make the best aggregates franchise in the world even better."