Vulcan Materials sees higher 2024 profit on strong construction demand
Feb 16 (Reuters) - Vulcan Materials on Friday forecast its full-year profit to rise, aided by higher pricing and robust demand for its concrete, asphalt and other construction aggregates, sending its shares up 5% in premarket trading.
The Birmingham, Alabama-based company expects its net earnings for 2024 to be in a range of $1.07 billion to $1.19 billion, higher than the $933 million it reported in 2023.
The Biden administration's $1 trillion infrastructure development package, aimed at upgrading transportation and non-residential projects, is driving demand for construction materials in the United States, benefiting companies like Vulcan.
Vulcan's largest segment, construction aggregates, which include sand, gravel and crushed stone, reported a quarterly profit of $424 million, up 30% from last year.
"We expect pricing momentum and operational execution will lead to attractive expansion in aggregates unit profitability, regardless of the macro demand environment," CEO Tom Hill said.
The company's fourth-quarter revenue of $1.83 billion came in line with the analyst's expectations, according to LSEG data.
On an adjusted basis, the company earned $1.46 per share, higher than profit estimates of $1.39 per share. (Reporting by Abhinav Parmar; Editing by Ravi Prakash Kumar)
