Vulcan Materials sees higher 2024 profit on strong construction demand

Vulcan Materials Co

16/02/2024 14:20

Feb 16 (Reuters) - Vulcan Materials  VMC.N  on Friday
forecast its full-year profit to rise, aided by higher pricing
and robust demand for its concrete, asphalt and other
construction aggregates, sending its shares up 5% in premarket
trading.
    The Birmingham, Alabama-based company expects its net
earnings for 2024 to be in a range of $1.07 billion to $1.19
billion, higher than the $933 million it reported in 2023.
    The Biden administration's $1 trillion infrastructure
development package, aimed at upgrading transportation and
non-residential projects, is driving demand for construction
materials in the United States, benefiting companies like
Vulcan.
     Vulcan's largest segment, construction aggregates, which
include sand, gravel and crushed stone, reported a quarterly
profit of $424 million, up 30% from last year. 
     "We expect pricing momentum and operational execution will
lead to attractive expansion in aggregates unit profitability,
regardless of the macro demand environment," CEO Tom Hill said.
     The company's fourth-quarter revenue of $1.83 billion came
in line with the analyst's expectations, according to LSEG data.
     On an adjusted basis, the company earned $1.46 per share,
higher than profit estimates of $1.39 per share.

 (Reporting by Abhinav Parmar; Editing by Ravi Prakash Kumar)
 ((Abhinav.Parmar@thomsonreuters.com;))