BIRNMINGHAM, Ala. (AP) - Asphalt and concrete supplier Vulcan Materials Co.
said its first-quarter profit tumbled, blaming the ongoing U.S. housing slump
and bad weather in certain markets.
Late Monday, Vulcan reported that for the quarter ended March 31, it earned
$13.9 million, or 13 cents per share, compared with $88.9 million, or 91 cents
per share, for the same quarter in 2007.
The 2007 quarter's results included a gain of 26 cents per share related to
a California real estate sale.
Revenue rose 19 percent to $817.3 million from $687.2 million in the
prior-year quarter.
Analysts polled by Thomson Financial expected a profit of 56 cents per share
on $904.7 million in revenue.
Shares dropped sharply in premarket trading, falling $6.49, or 9.6 percent,
after closing Monday at $67.49.
Vulcan said the quarter's volumes were hurt "by the downturn in residential
construction and less favorable weather" in certain markets. This was partially
offset by growth in construction activity related to major industrial projects
in Texas and along the Gulf Coast.
Pricing remained "resilient" and helped offset higher energy-related costs
and higher noncash charges for depreciation, depletion and amortization, along
with increased interest expense, the company said.
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