Vulcan Materials Co. (VMC) third-quarter earnings plummeted 76%
on weakened sales and margins, as the construction aggregates
company's results fell short of analysts' views.
Shares were down 6.1%, at $34.01 after hours. Through the close,
the stock has fallen 31% so far this year.
The company--a supplier of asphalt, cement and other mainstays
of heavy construction--reported aggregates shipments fell 2.6%, as
the average price for aggregates was flat. Despite the lower
volume, Chairman and Chief Executive Don James said the company is
"encouraged by underlying shipping trends." He said trailing
12-month shipments of aggregates have been increasing since
February in spite of a labor strike affecting its customers in
Illinois in the most recent period.
The company struggled with a downturn in construction projects
in the recession, and stimulus funds set aside for highway
construction took longer than expected to bolster suppliers'
results. But the flow of contract awards for highway construction,
an indicator of future construction activity, has been improving
since March, when stimulus-related funds became available to
states.
Vulcan Materials reported a profit of $13.2 million, or 10 cents
a share, from $54.2 million, or 43 cents a share, a year earlier.
Earnings from continuing operations fell to 8 cents from 38
cents.
Revenue fell 4.5%, to $743.2 million.
Analysts surveyed by Thomson Reuters predicted earnings of 18
cents on revenue of $775 million.
Gross margin fell to 17.1% from 19.9%.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291;
joan.solsman@dowjones.com