(Reuters) -Vulcan Materials 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 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.
(Reporting by Abhinav Parmar in Bengaluru; Editing by Maju Samuel)
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