Vulcan Materials posts downbeat results on subdued demand for construction supplies

Vulcan Materials Co

06/08/2024 13:06

Aug 6 (Reuters) - Construction supplies maker Vulcan
Materials  VMC.N  on Tuesday missed Wall Street estimates for
second-quarter revenue and profit and lowered its full-year
adjusted EBITDA forecast as high interest rates put a strain on
housing growth, keeping demand for the company's construction
aggregates muted.  
    Shares of the company were down 2.7% in premarket trade.
    Persistent inflation has driven up operational costs for
corporates, while higher borrowing costs have slowed
construction spending, hurting construction supplies makers such
as Vulcan.
    The company now expects 2024 adjusted EBITDA to be in a
range of $2 billion to $2.15 billion, down from its previous
forecast of $2.15 billion to $2.30 billion 
    "Significant weather disruptions throughout the first half
of the year impacted both construction activity and operating
efficiencies, resulting in adjustments to our aggregates volume
and cost outlook for the full year," CEO Tom Hill said. 
    The company reported $2.01 billion in revenue for the
quarter ended June 30. Analysts had, on average, expected $2.03
billion, according to LSEG data. 
    Vulcan's largest segment, construction aggregates, which
include sand, gravel and crushed stone, reported a gross profit
of $529 million, up 6% from a year earlier. 
    On an adjusted basis the company earned $2.31 per share for
the reported quarter, missing estimates of $2.48 per share.

 (Reporting by Abhinav Parmar in Bengaluru; Editing by Shailesh
Kuber)
 ((Abhinav.Parmar@thomsonreuters.com;))