July 31 (Reuters) - Vulcan Materials ( VMC ) posted
second-quarter revenue and profit below Wall Street estimates on
Thursday, as weather disruptions slowed construction activity
and weighed on demand for its construction materials.
Demand for construction supplies have taken a hit from
persistent inflation, which drove up operational costs for
corporates. Higher borrowing costs also slowed construction
spending.
"Despite weather challenges, our pricing discipline and
excellent cost performance have led to a 13% increase in
aggregates cash gross profit per ton," CEO Tom Hill said in a
statement.
The company reported $2.10 billion in revenue for the
quarter ended June 30, up 4.4% from a year earlier. Analysts on
average had expected $2.19 billion, according to data compiled
by LSEG.
Birmingham, Alabama-based Vulcan Materials ( VMC ) sells aggregates
like crushed stone, sand, and gravel, and supplies asphalt in
six states including Texas and California. It also produces
ready-mixed concrete in California, Maryland, and Virginia,
delivering materials by truck, ship, barge, and rail.
On an adjusted basis, Vulcan reported a profit of $2.45 per
share. Analysts on average had expected a profit of $2.54 per
share.
"Our execution in the first half of the year along with an
acceleration in new highway construction activity in our markets
supports our full-year outlook to deliver $2.35 to $2.55 billion
of Adjusted EBITDA," CEO Hill added.