BIRMINGHAM, Ala. (AP) -- Vulcan Materials Co., the biggest U.S. producer of gravel and sand used for construction, said Thursday that its fourth-quarter loss narrowed and announced new plans to sell assets and cut costs.
The Birmingham, Ala. company, which is in the midst of a proxy fight with Martin Marietta Materials Inc., is moving "aggressively" with its new plan to boost profitability, said Sterne, Agee & Leach analyst Todd Vencil.
Martin Marietta made a $4.74 billion hostile bid for larger rival Vulcan in December after failing to agree to a deal earlier in the year. Vulcan has sued the Raleigh, N.C., company, accusing Martin Marietta of using confidential information to launch an illegal bid.
Vencil said in a client note that Vulcan "certainly appears to be working to fend off" Martin Marietta's takeover attempts.
Vulcan has said that Martin Marietta's offer undervalues the company and its future prospects. Vulcan has called the offer opportunistic because it seeks to exploit a historic downturn in U.S. construction spending.
Vulcan said Thursday that it hopes to save $100 million annually by 2014, on top of the $55 million per year it's already cut, by consolidating some work functions and retiring old technology systems.
Vulcan also said Thursday that it anticipates about $500 million in net proceeds from planned asset sales over the next year to 18 months. These may include the sale of certain concrete and cement operations, gravel, rock and sand assets and real estate.
The company also said it expects $500 million in earnings in 2012 before taxes, interest and accounting measures that track asset value changes. Vencil said that would be "incredibly impressive" for the company. Analysts polled by FactSet expect about $403 million by that profit measure.
For the three months ended Dec. 31, Vulcan lost $27.9 million, or 22 cents per share. That compares with a loss of $47 million, or 37 cents per share, in the last three months of 2010.
Excluding restructuring costs and other items, Vulcan lost 14 cents per share in the most recent quarter. Analysts forecast a loss of 37 cents per share.
Selling, general and administrative expenses declined 10 percent to $71.7 million.
Revenue climbed 5 percent to $614.6 million from $586.2 million. The performance beat the $597.4 million Wall Street expected.
Vulcan's full-year loss shrunk to $70.8 million, or 55 cents per share, from a loss of $96.5 million, or 75 cents per share, in 2010. Annual revenue was flat at $2.56 billion.
The company's stock added 45 cents, or 1 percent, to $47.74 in afternoon trading. Martin Marietta shares added 56 cents to $89.53.
There are no comments yet