Third Quarter Failures for Top Construction Aggregates
The nation’s top aggregates are at war – not for materials, projects or construction time, but for the top spot on the best of the best list. Vulcan Materials Company has long been listed as the number one construction aggregate of the United States, but after reports surfaced that their quarterly earnings fell by 76 percent – and at the same time their longtime runner up Martin Marietta saw profits soar – things could be changing.
While in the big scheme of things these United States construction aggregates companies are hardly the big players in terms of global acquisition, Vulcan Materials and Martin Marietta pride itself on their strong national numbers. The recession has changed a lot about these companies, and net earnings were one: third quarter earning were $0.10 per diluted share and earnings of $11 million for Vulcan.
"Despite the modest decline in third quarter aggregates shipments, we are encouraged by underlying shipping trends. Trailing twelve month aggregates shipments have been increasing since February in spite of significantly lower volumes in the third quarter in Illinois due to a labor strike affecting our customers. In asphalt, trailing twelve month shipments have been relatively stable for the last 4 months,” said Don James, Vulcan Chairman and Chief Executive Officer.
Meanwhile, Martin Marietta announced its third quarter profits at a loss of 6.3 percent – a minor cut in comparison to their rival. The company reported its earnings at $52 million, or $1.13 per share, yet overall it’s total shares went up by 3 percent to $2.43.
"We are pleased to report our second consecutive quarter of aggregates volume growth. In fact, aggregates shipments improved in each of our end-use markets during the quarter, resulting in an overall 6.3% increase, led by a 14% increase in the nonresidential end-use market, both compared with the prior-year quarter. We are confident that we are well positioned to capitalize on an economic recovery,” said Ward Nye, President and CEO of Martin Marietta Materials.
Source: Martin, Vulcan