Vulcan Materials Earnings: Streak of Three Straight Losses Snapped

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S&P 500 (NYSE:SPY) component Vulcan Materials Company (NYSE:VMC) reported its results for the third quarter. Vulcan Materials is a producer of mainly crushed stone, sand and gravel, asphalt mix, concrete and cement.

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Vulcan Materials Company Earnings Cheat Sheet

Results: Net income for Vulcan Materials Company fell to $14.3 million (11 cents per share) vs. $20 million (15 cents per share) a year earlier. This is a decline of 28.6% from the year-earlier quarter.

Revenue: Fell 4.2% to $728.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Vulcan Materials Company fell short of the mean analyst estimate of 17 cents per share. Analysts were expecting revenue of $730.2 million.

Quoting Management: Don James, Chairman and Chief Executive Officer, stated, “This quarter marks the fourth consecutive quarter of year-over-year higher unit profitability in aggregates, lower SAG expense and growth in Adjusted EBITDA. For the trailing twelve months ended September 30, 2012, cash gross profit per ton in aggregates was eight percent higher than the prior twelve months, SAG expense was down 12 percent and Adjusted EBITDA increased 30 percent. These results demonstrate the benefits of our ongoing focus on reducing controllable costs and maximizing operating efficiency across the organization.”

Key Stats:

The company’s profit in the latest quarter follows losses in the three previous quarters. The company reported a net loss of $18.3 million in the second quarter, a loss of $52.1 million in the first quarter and a loss of $27.9 million in the fourth of the last fiscal year.

The company has fallen short of estimates for two consecutive quarters. In the second quarter, it missed expectations by 8 cents with a loss of 2 cents versus a mean estimate of net income of 6 cents per share.

Revenue has declined for two quarters in a row. In the second quarter, revenue declined 1.1% to $694.1 million from the year-earlier quarter.

The company’s cost of sales slipped to $601.9 million, a dip of 84.8% from a year ago. Last quarter, cost of sales was 82.6% of revenue versus 84.8% a year earlier.

Looking Forward: The average estimate for the fourth quarter is steady at 5 cents a share. The average estimate for the fiscal year has remained at 35 cents per share.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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