Vulcan Sees Profits Cut

Sand and gravel producer Vulcan sees profits cut 83 percent

BIRMINGHAM, AL  — The largest U.S. producer of construction grade gravel and sand announced an 83 percent cut in its 4th quarter profit. Vulcan Materials Co. blamed the cut on weak volumes, which offset higher prices, lower expenses and cheaper diesel fuel.

While shipments of gravel, rock and sand fell 23 percent their average selling price climbed around 6 percent. Vulcan expects 5 percent to 10 percent drop in and selling prices to go up 6 percent to 8 percent.

For FY 2008, net income fell to $228.6 million, or $2.06 per share, compared to $450.9 million, or $4.54 per share, in 2007. For the quarter that ended in December 2008, Vulcan's profit slid to $14.8 million, or 13 cents per share. That compares with $84.6 million, or 82 cents per share, the previous year.

Earnings from continuing operations in 2008 totaled $231 million, or $2.08 per share. Earnings from continuing operations for the quarter that ended in December 2008 came to $15.5 million, or 14 cents per share.

Selling, administrative and general expenses in the quarter were down 8 percent, while diesel fuel costs declined 9 percent in the same quarter.

Sales rose to $3.65 billion from $3.33 billion in 2008. Shipments of gravel, rock and sand declined 12 percent in 2008. However, 4th quarter sales slid to $799.2 million from $856.9 million.