Vulcan Materials CO
For the period ended Sep 30, 2024. Filed Oct 30, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Oct 30, 2024
VMC$282.72-1.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-07.
0001396009-24-000017
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-10-30.
0001396009-24-000023
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 246 previous paragraphs and 245 current paragraphs.
144 unchanged; 49 reworded; 52 added; 49 removed; 4 previous and 0 current paragraphs rearranged.
Tables are not compared: 16 previous and 16 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (52)
Current report
FINANCIAL HIGHLIGHTS FOR THIRD QUARTER 2024
Current report
Compared to third quarter of 2023:
Current report
▪Total revenues decreased $181.9 million, or 8%, to $2,003.9 million
Current report
▪Gross profit decreased $25.8 million, or 4%, to $565.2 million
Current report
▪Aggregates segment sales decreased $56.0 million, or 3%, to $1,572.4 million
Current report
▪Aggregates segment freight-adjusted revenues decreased $7.7 million, or 1%, to $1,228.0 million
Current report
▪Shipments decreased 10%, or 6.3 million tons, to 57.7 million tons
Current report
▪Operating earnings decreased $81.8 million, or 20%, to $337.1 million
Current report
▪Earnings attributable to Vulcan from continuing operations were $1.57 per diluted share compared to $2.09 per diluted share
Current report
▪Adjusted EBITDA was $580.6 million, a decrease of $21.6 million, or 4%
Current report
Results and activities in the third quarter evidence the consistent execution of our two-pronged strategy to generate durable growth. We continue to enhance our core through expansion of our aggregates gross profit per ton, which increased 9% in the third quarter. In addition, our industry-leading cash gross profit per ton increased 10% in the third quarter and has grown by double-digits for eight consecutive quarters. We also recently announced the acquisition of Wake Stone Corporation, a leading pure-play aggregates producer, that will expand our reach in high-growth geographies in the Carolinas. Our Vulcan Way of Selling and Vulcan Way of Operating disciplines remain fundamental to compounding profitability across our franchise and successfully integrating new operations.
Current report
The acquisition of Wake Stone Corporation is consistent with our disciplined capital allocation priorities and aggregates-led strategy of continuing to expand our reach to better serve more high-growth regions in the United States, most notably with this transaction in Raleigh, North Carolina. The acquisition is expected to provide more than 60 years of quality hard rock reserves. We expect to close the transaction during the fourth quarter of this year, subject to the satisfaction of customary closing conditions.
Current report
While significant weather disruptions have impacted construction activity through the first nine months of the year, overall demand fundamentals continue to underpin long-term growth. The pricing environment remains positive, and we continue to execute well. Given the decline in shipments to date and continued weather events so far in the fourth quarter, we now expect full-year Adjusted EBITDA of approximately $2,000 million.
Current report
As we look to 2025, we expect aggregates price to improve high-single digits, costs to benefit from moderating inflation and our Vulcan Way of Operating discipline, and most importantly cash gross profit per ton to continue expanding at double-digit levels. A demand backdrop underpinned by growth in public construction activity and an improving private demand environment should lead to volume growth in 2025. Our steadfast focus to execute at the highest level – both commercially and operationally – positions us well to capitalize on improving volume and grow earnings.
Current report
THIRD QUARTER 2024 COMPARED TO THIRD QUARTER 2023
Current report
Net earnings attributable to Vulcan for the third quarter of 2024 include:
Current report
▪pretax charges of $86.6 million associated with a goodwill impairment
Current report
▪pretax loss on discontinued operations of $1.8 million
Current report
▪$1.9 million of tax charges related to a valuation allowance against Calica deferred tax assets, including NOL carryforwards
Current report
Net earnings attributable to Vulcan for the third quarter of 2023 include:
Current report
▪pretax charges of $28.3 million associated with long-lived asset impairments
Current report
▪pretax charges of $1.2 million associated with non-routine acquisitions
Current report
▪pretax loss on discontinued operations of $3.8 million
Current report
▪$5.0 million of tax charges related to a valuation allowance against Calica deferred tax assets, including NOL carryforwards
Current report
Aggregates shipments decreased 10% compared to the prior year. Shipments across the Southeast were impacted by significant rainfall in July, followed by numerous hurricanes and severe storms in August and September. The prior year's third quarter included fewer severe weather events.
Current report
The pricing environment remained positive across our footprint. Freight-adjusted selling prices increased 10.2%, as compared to the prior year. Freight-adjusted unit cash cost of sales was negatively impacted by lower volume and challenging, weather-affected operating conditions; freight-adjusted cash cost of sales dollars remained flat compared to the prior year.
Current report
During the third quarter of 2024, we recorded an $86.6 million pretax goodwill impairment charge related to a reporting unit that includes concrete operations acquired from U.S. Concrete in 2021 ($84.2 million after tax). During the third quarter of 2023, our concrete assets in Texas were classified as held for sale, resulting in a pretax long-lived asset impairment charge of $28.3 million ($21.1 million after tax).
Current report
Other nonoperating income (expense), net was $3.8 million of expense for the third quarter of 2024 compared to $6.4 million of expense in the third quarter of 2023.
Current report
Income tax expense from continuing operations was $85.2 million in the third quarter of 2024 compared to $85.8 million in the third quarter of 2023. The tax expense is comparable to the amount recorded in the third quarter of 2023, as the reduction in pretax earnings in the third quarter of 2024 was primarily due to a goodwill impairment, the majority of which was non-tax deductible.
Current report
Earnings attributable to Vulcan from continuing operations were $1.57 per diluted share in the third quarter of 2024 compared to $2.09 per diluted share in the third quarter of 2023.
Current report
Net earnings attributable to Vulcan for the first nine months of 2024 include:
Current report
▪pretax charges of $86.6 million associated with a goodwill impairment
Current report
▪pretax charges of $1.8 million associated with non-routine acquisitions
Current report
▪pretax loss on discontinued operations of $6.8 million
Current report
▪$4.5 million of tax charges related to a valuation allowance against Calica deferred tax assets, including NOL carryforwards
Current report
Net earnings attributable to Vulcan for the first nine months of 2023 include:
Current report
▪pretax charges of $28.3 million associated with long-lived asset impairments
Current report
▪pretax charges of $2.0 million associated with non-routine acquisitions
Current report
▪pretax loss on discontinued operations of $11.7 million
Current report
▪$11.2 million of tax charges related to a valuation allowance against Calica deferred tax assets, including NOL carryforwards
Showing the first 40 of 52 passages. Open the source sections for the rest.
Removed paragraphs (49)
Previous report
FINANCIAL HIGHLIGHTS FOR SECOND QUARTER 2024
Previous report
Compared to second quarter of 2023:
Previous report
▪Total revenues decreased $98.5 million, or 5%, to $2,014.4 million
Previous report
▪Aggregates segment sales increased $32.7 million, or 2%, to $1,613.5 million
Previous report
▪Aggregates segment freight-adjusted revenues increased $75.7 million, or 6%, to $1,262.6 million
Previous report
▪Shipments decreased 5%, or 3.3 million tons, to 60.1 million tons
Previous report
▪Aggregates segment gross profit increased $28.8 million, or 6%, to $528.5 million
Previous report
▪Operating earnings increased $2.5 million, or 0.6%, to $453.6 million
Previous report
▪Earnings attributable to Vulcan from continuing operations were unchanged at $2.33 per diluted share
Previous report
▪Adjusted EBITDA was $603.1 million, an increase of $7.8 million, or 1.3%
Previous report
▪Returned capital to shareholders via share repurchases of $50.0 million at $250.88 average price per share versus $49.9 million at $206.82 average price per share
Previous report
Our aggregates-led business delivered another quarter of gross profit and margin expansion. Even with significant rainfall disrupting construction activity and operating efficiencies, our aggregates gross profit per ton and cash gross profit per ton increased 12%. Gross profit margin expanded 120 basis points. These results demonstrate our consistent execution and the durable characteristics of our business. The construction environment remains supportive of continued aggregates price growth, and our focus remains on compounding aggregates unit profitability to drive earnings growth and strong cash generation.
Previous report
Significant weather disruptions throughout the first half of the year impacted both construction activity and operating efficiencies, resulting in adjustments to our aggregates volume and cost outlook for the full year. Despite the challenging environment, aggregates cash gross profit per ton has increased double-digits this year, and we expect this trend to continue for the remainder of the year. The pricing environment remains positive, and overall demand fundamentals continue to underpin long-term growth.
Previous report
Management expectations for 2024 include the following:
Previous report
▪Continued improvement in Aggregates segment cash gross profit per ton ($9.46 in 2023)
Previous report
•Total shipments down 4% to 7% (234.3 million tons in 2023)
Previous report
•Freight-adjusted price improvement of 10% to 12% ($19.00 in 2023)
Previous report
▪High-single digit increase in freight-adjusted cash cost (freight-adjusted price less segment cash gross profit per ton; $9.54 in 2023)
Previous report
▪Total Asphalt and Concrete segment cash gross profit of approximately $275 million ($320 million in 2023 which included results from the concrete operations divested in late 2023)
Previous report
▪Selling, Administrative and General expenses of $550 million to $560 million ($543 million in 2023)
Previous report
▪Interest expense of approximately $155 million
Previous report
▪Depreciation, depletion, accretion and amortization expense of approximately $610 million
Previous report
▪An effective tax rate of 22% to 23%
Previous report
▪Net earnings attributable to Vulcan of $950 million to $1,070 million
Previous report
▪Adjusted EBITDA between $2,000 million and $2,150 million
Previous report
SECOND QUARTER 2024 COMPARED TO SECOND QUARTER 2023
Previous report
Net earnings attributable to Vulcan for the second quarter of 2024 include:
Previous report
▪pretax loss on discontinued operations of $2.7 million
Previous report
Net earnings attributable to Vulcan for the second quarter of 2023 include:
Previous report
▪pretax charges of $4.3 million associated with divested operations
Previous report
▪pretax charges of $0.3 million associated with non-routine acquisitions
Previous report
▪pretax loss on discontinued operations of $4.9 million
Previous report
▪$2.6 million of tax charges related to a valuation allowance against Calica deferred tax assets, including NOL carryforwards
Previous report
Aggregates shipments decreased 5% compared to the prior year as a result of significant rainfall in many key markets, particularly in Texas and across the Southeast.
Previous report
Price growth in the second quarter was strong with all markets realizing year-over-year improvement. Freight-adjusted selling prices increased 12.2%, as compared to the prior year.
Previous report
Challenging weather conditions also impacted operating efficiencies and contributed to the year-over-year increase in freight-adjusted unit cash cost of sales in the quarter. On a trailing-twelve months basis, unit cash cost of sales has increased 10%.
Previous report
Other nonoperating income (expense), net was $8.7 million of expense for the second quarter of 2024 compared to $0.1 million of expense in the second quarter of 2023. The year-over-year increase was mostly driven by a foreign currency translation loss resulting from the rapid devaluation of the Mexican peso in June following the presidential election.
Previous report
Income tax expense from continuing operations was $94.4 million in the second quarter of 2024 compared to $92.0 million in the second quarter of 2023. The increase in tax expense was primarily due to less excess tax benefits generated from share-based compensation recognized in the second quarter of 2024.
Previous report
Earnings attributable to Vulcan from continuing operations were $2.33 per diluted share in the second quarter of 2024, unchanged from the second quarter of 2023.
Previous report
Net earnings attributable to Vulcan for the first six months of 2024 include:
Showing the first 40 of 49 passages. Open the source sections for the rest.
Reworded paragraphs (49)
Previous wording
▪Freight-adjusted sales price increased 12.2%, or $2.29 per ton, to $21.00
Current wording
▪Freight-adjusted sales price increased 10.2%, or $1.96 per ton, to $21.27
Previous wording
▪Gross profit increased $8.9 million, or 2%, to $592.2 million
Current wording
▪Aggregates segment gross profit decreased $10.6 million, or 2%, to $498.5 million
Previous wording
▪Unit profitability (as measured by gross profit per ton) increased 12% to $8.79 per ton
Current wording
▪Unit profitability (as measured by gross profit per ton) increased 9% to $8.63 per ton
Previous wording
▪Asphalt and Concrete segment gross profit decreased $19.9 million to $63.7 million, collectively
Current wording
▪Asphalt and Concrete segment gross profit decreased $15.2 million to $66.7 million, collectively
Previous wording
▪Selling, administrative and general (SAG) expenses decreased $5.0 million and increased 10 basis points as a percentage of total revenues
Current wording
▪Selling, administrative and general (SAG) expenses decreased $14.8 million (20 basis points as a percentage of total revenues)
Previous wording
▪Adjusted earnings attributable to Vulcan from continuing operations were $2.35 per diluted share compared to $2.29 per diluted share
Current wording
▪Adjusted earnings attributable to Vulcan from continuing operations were $2.22 per diluted share compared to $2.29 per diluted share
Previous wording
▪Net earnings attributable to Vulcan were $308.0 million, a decrease of $0.6 million, or 0.2%
Current wording
▪Net earnings attributable to Vulcan were $207.6 million, a decrease of $68.9 million, or 25%
Previous wording
▪Returned capital to shareholders via dividends of $60.9 million at $0.46 per share versus $57.2 million at $0.43 per share
Current wording
▪Returned capital to shareholders via dividends of $60.8 million at $0.46 per share versus $57.2 million at $0.43 per share
Previous wording
Capital expenditures, including maintenance and growth projects, were $194.8 million in the second quarter and $297.9 million on a year-to-date basis. During 2024, we expect to spend between $625 million and $675 million on maintenance and growth projects. During the quarter, we completed bolt-on acquisitions in both Alabama and Texas, two of our top ten states. We also returned $110.9 million to shareholders through $50.0 million of common stock repurchases and $60.9 million of dividends in the second quarter.
Current wording
Capital expenditures, including maintenance and growth projects, were $104.3 million in the third quarter and $402.2 million on a year-to-date basis. During 2024, we expect to spend between $625 million and $650 million on maintenance and growth projects. During the quarter, we returned $60.8 million to shareholders through dividends, a 6% increase versus the prior year.
Previous wording
Interest expense, net of interest income, was $40.2 million in the second quarter compared with $46.7 million in the prior year.
Current wording
Interest expense, net of interest income, was $38.4 million in the third quarter compared with $46.6 million in the prior year.
Previous wording
We remain well positioned for continued growth with a strong liquidity position and balance sheet profile. Disciplined capital allocation has resulted in a 160 basis points improvement in return on average capital over the last twelve months. As of June 30, 2024, the ratio of total debt to trailing-twelve months Adjusted EBITDA was 1.7 times (unchanged on a net debt basis), below our stated long-term target leverage range of 2.0 to 2.5 times.
Current wording
We remain well positioned for continued growth with a strong liquidity position and balance sheet profile. As of September 30, 2024, the ratio of total debt to trailing-twelve months Adjusted EBITDA was 1.7 times, below our stated long-term target leverage range of 2.0 to 2.5 times. On a trailing twelve months basis, return on invested capital improved 70 basis points over the prior year to 16.1%.
Previous wording
Second quarter 2024 total revenues were $2,014.4 million, down 5% from the second quarter of 2023. Shipments decreased in aggregates (-5%), decreased in ready-mixed concrete (-56%) and remained flat in asphalt mix. Gross profit increased in the Aggregates (+$28.8 million or 6%) and Asphalt (+$2.4 million or 4%) segments. Concrete segment gross profit decreased by $22.3 million (-83%) as a result of the divestiture of our operations in Texas in November 2023 (see Note 16 to thecondensed consolidated financial statements).
Current wording
Third quarter 2024 total revenues were $2,003.9 million, down 8% from the third quarter of 2023. Shipments decreased in aggregates (-10%), decreased in ready-mixed concrete (-56%) and increased in asphalt mix (+1%). Gross profit decreased in the Aggregates segment (-$10.6 million or 2%) and increased in the Asphalt segment (+$4.3 million or 8%). Concrete segment gross profit decreased by $19.5 million (-75%) in part as a result of the divestiture of our operations in Texas in November 2023 (see Note 16 to thecondensed consolidated financial statements).
Previous wording
Net earnings attributable to Vulcan for the second quarter of 2024 were $308.0 million, or $2.31 per diluted share, compared to $308.6 million, or $2.31 per diluted share, in the second quarter of 2023. Each period’s results were impacted by discrete items, as follows:
Current wording
Net earnings attributable to Vulcan for the third quarter of 2024 were $207.6 million, or $1.56 per diluted share, compared to $276.5 million, or $2.07 per diluted share, in the third quarter of 2023. Each period’s results were impacted by discrete items, as follows:
Previous wording
Adjusted for these discrete items, earnings attributable to Vulcan from continuing operations (Adjusted Diluted EPS) was $2.35 per diluted share for the second quarter of 2024 compared to $2.29 per diluted share for the second quarter of 2023.
Current wording
Adjusted for these discrete items, earnings attributable to Vulcan from continuing operations (Adjusted Diluted EPS) was $2.22 per diluted share for the third quarter of 2024 compared to $2.29 per diluted share for the third quarter of 2023.
Previous wording
CONTINUING OPERATIONS — Changes in earnings from continuing operations before income taxes for the second quarter of 2024 versus the second quarter of 2023 are summarized below:
Current wording
CONTINUING OPERATIONS — Changes in earnings from continuing operations before income taxes for the third quarter of 2024 versus the third quarter of 2023 are summarized below:
Previous wording
Second quarter Aggregates segment gross profit increased 6% to $528.5 million (increased 12% to $8.79 on a per ton basis), and gross profit margin expanded 120 basis points. Cash gross profit per ton improved 12% to $10.92 per ton. Continued pricing and operational execution drove margin expansion despite lower shipments and challenging weather conditions throughout the quarter.
Current wording
Third quarter Aggregates segment gross profit decreased 2% to $498.5 million (increased 9% to $8.63 on a per ton basis), and gross profit margin expanded 40 basis points. Cash gross profit per ton increased 10% to $10.89 per ton, despite lower shipments and harsh weather conditions throughout the quarter. Improvements in unit profitability were widespread across our footprint.
Previous wording
Overall, non-aggregates segments gross profit of $63.7 million was $19.9 million lower than the prior year’s second quarter.
Current wording
Overall, non-aggregates segments gross profit of $66.7 million was $15.2 million lower than the prior year’s third quarter.
Previous wording
Asphalt segment gross profit of $59.0 million was up $2.4 million from the prior year’s second quarter, and cash gross profit of $70.0 million was a 7% improvement over the prior year. Asphalt mix shipments were in line with the prior year's second quarter, and pricing increased 4.3%. Strong shipments in California were offset by lower shipments in Texas due to wet weather.
Current wording
Asphalt segment gross profit of $60.2 million was up $4.3 million from the prior year’s third quarter, and cash gross profit of $72.2 million was a 12% improvement over the prior year. Asphalt mix shipments increased 1%, and pricing increased 6.1%.
Previous wording
Concrete segment gross profit was $4.7 million for the second quarter, and cash gross profit was $16.6 million. The prior year's second quarter included results from the previously divested operations in Texas.
Current wording
Concrete segment gross profit of $6.5 million was down $19.5 million from the prior year's third quarter, and cash gross profit of $17.4 million was a 63% decrease from the prior year. The prior year's third quarter included results from the previously divested operations in Texas which accounted for the majority of the year-over-year decline in cash gross profit.
Previous wording
SAG expense was $134.1 million for the second quarter compared to $139.1 million in the prior year. As a percent of total revenues, SAG expense was 6.7% in the second quarter.
Current wording
SAG expense was $129.1 million for the third quarter compared to $143.9 million in the prior year. As a percent of total revenues, SAG expense was 6.4% in the third quarter, a 20 basis point improvement compared to the prior year.
Previous wording
Gain on sale of property, plant & equipment and businesses was $3.8 million in the second quarter of 2024 compared to $16.7 million in the second quarter of 2023. The 2023 amount includes a pretax net gain of $15.2 million from the sale of a former recycled concrete facility in Illinois.
Current wording
Gain on sale of property, plant & equipment and businesses was $0.2 million in the third quarter of 2024 compared to $4.3 million in the third quarter of 2023.
Previous wording
Other operating income (expense), net which is composed primarily of idle facilities expense, environmental remediation costs, gain (loss) on settlement of AROs, finance charges collected and net rental income (expense), was $8.3 million of expense for the second quarter of 2024 compared to $9.8 million of expense in the second quarter of 2023.
Current wording
Other operating income (expense), net which is composed primarily of idle facilities expense, environmental remediation costs, gain (loss) on settlement of AROs, finance charges collected and net rental income (expense), was $12.6 million of expense for the third quarter of 2024 compared to $4.2 million of expense in the third quarter of 2023.
Previous wording
Net interest expense was $40.2 million in the second quarter of 2024 compared to $46.7 million in the second quarter of 2023.
Current wording
Net interest expense was $38.4 million in the third quarter of 2024 compared to $46.6 million in the third quarter of 2023.
Previous wording
DISCONTINUED OPERATIONS — Second quarter pretax loss from discontinued operations was $2.7 million in 2024 compared with a pretax loss of $4.9 million in 2023. Both periods include charges related to general and product liability costs, including legal defense costs, and environmental remediation costs associated with our former Chemicals business. For additional details, see Note 1 to the condensed consolidated financial statements under the caption Discontinued Operations.
Current wording
DISCONTINUED OPERATIONS — Third quarter pretax loss from discontinued operations was $1.8 million in 2024 compared with a pretax loss of $3.8 million in 2023. Both periods include charges related to general and product liability costs, including legal defense costs, and environmental remediation costs associated with our former Chemicals business. For additional details, see Note 1 to the condensed consolidated financial statements under the caption Discontinued Operations.
Previous wording
Total revenues for the first six months of 2024 were $3,560.1 million, down 5% from the first six months of 2023. Shipments decreased in aggregates (-6%), decreased in ready-mixed concrete (-55%) and remained flat in asphalt mix. Gross profit increased in the Aggregates (+$28.6 million or 4%) and Asphalt (+$6.3 million or 11%) segments. Concrete segment gross profit decreased by $23.0 million (-93%) as a result of the divestiture of our operations in Texas in November 2023 (see Note 16 to thecondensed consolidated financial statements).
Current wording
Total revenues for the first nine months of 2024 were $5,564.0 million, down 6% from the first nine months of 2023. Shipments decreased in aggregates (-7%), decreased in ready-mixed concrete (-55%) and increased in asphalt mix (+1%). Gross profit increased in the Aggregates (+$18.0 million or 1%) and Asphalt (+$10.6 million or 9%) segments. Concrete segment gross profit decreased by $42.5 million (-84%) in part as a result of the divestiture of our operations in Texas in November 2023 (see Note 16 to thecondensed consolidated financial statements).
Previous wording
Net earnings attributable to Vulcan for the first six months of 2024 were $410.6 million, or $3.08 per diluted share, compared to $429.3 million, or $3.21 per diluted share, in the first six months of 2023. Each period’s results were impacted by discrete items, as follows:
Current wording
Net earnings attributable to Vulcan for the first nine months of 2024 were $618.2 million, or $4.65 per diluted share, compared to $705.8 million, or $5.28 per diluted share, in the first nine months of 2023. Each period’s results were impacted by discrete items, as follows:
Previous wording
Adjusted for these discrete items, earnings attributable to Vulcan from continuing operations (Adjusted Diluted EPS) was $3.14 per diluted share for the first six months of 2024 compared to $3.25 per diluted share for the first six months of 2023.
Current wording
Adjusted for these discrete items, earnings attributable to Vulcan from continuing operations (Adjusted Diluted EPS) was $5.37 per diluted share for the first nine months of 2024 compared to $5.54 per diluted share for the first nine months of 2023.
Previous wording
Aggregates segment gross profit was $831.8 million ($7.68 per ton) in the first six months of 2024 versus $803.2 million ($6.97 per ton) in the prior year. On a year-to-date basis, cash gross profit per ton improved 11% to $10.01 per ton. Aggregates shipments decreased 6% as compared to the prior year due to unfavorable weather.
Current wording
Aggregates segment sales for the first nine months of 2024 were $4,477.3 million (down 1%), and shipments decreased 7%, or 13.2 million tons, compared to the prior year. Aggregates segment gross profit was $1,330.3 million ($8.01 per ton) in the first nine months of 2024 versus $1,312.3 million ($7.32 per ton) in the prior year. On a year-to-date basis, cash gross profit per ton increased 11% to $10.31 per ton.
Previous wording
Freight-adjusted selling prices increased 11.3% as compared to the prior year reflecting continued positive momentum. Freight-adjusted unit cost of sales for the first six months of 2024 increased 12%, or $1.41 per ton, versus the prior year.
Current wording
Freight-adjusted selling prices increased 10.9% as compared to the prior year. Freight-adjusted unit cost of sales for the first nine months of 2024 increased 12%, or $1.37 per ton, versus the prior year.
Previous wording
Asphalt segment gross profit of $63.7 million was up $6.3 million from the first six months of 2023, and cash gross profit of $83.5 million was an 11% improvement over the prior year. Asphalt mix shipments increased 1%, and average unit selling prices increased 4.9%, or $3.66 per ton.
Current wording
Asphalt segment gross profit of $123.9 million was up $10.6 million from the first nine months of 2023, and cash gross profit of $155.8 million was an 11% improvement over the prior year. Asphalt mix shipments increased 1%, and average unit selling prices increased 5.4%, or $4.05 per ton.
Previous wording
Concrete segment gross profit was $1.7 million for the first six months of 2024, and cash gross profit was $25.8 million. The prior year included results from our previously divested operations in Texas.
Current wording
Concrete segment gross profit of $8.2 million was down $42.5 million from the first nine months of 2023, and cash gross profit of $43.1 million was a 61% decrease from the prior year. The prior year included results from our previously divested operations in Texas.
Previous wording
SAG expenses were $263.8 million (7.4% of total revenues) versus $256.5 million (6.8% of total revenues) in the prior year’s first six months.
Current wording
SAG expenses were $393.0 million (7.1% of total revenues) versus $400.4 million (6.7% of total revenues) in the prior year’s first nine months.
Previous wording
Gain on sale of property, plant & equipment and businesses was $4.4 million in the first six months of 2024 versus $18.5 million in the first six months of 2023. The 2023 amount includes a net pretax gain of $15.2 million from the sale of real estate associated with a former recycled concrete facility in Illinois.
Current wording
Gain on sale of property, plant & equipment and businesses was $4.6 million in the first nine months of 2024 versus $22.8 million in the first nine months of 2023. The 2023 amount includes a net pretax gain of $15.2 million from the sale of real estate associated with a former recycled concrete facility in Illinois.
Previous wording
Other operating income (expense), net which is composed primarily of idle facilities expense, environmental remediation costs, gain (loss) on settlement of AROs, finance charges collected and net rental income (expense), was $11.3 million of expense for the first six months of 2024 compared to $9.0 million of expense in the first six months of 2023.
Current wording
Other operating income (expense), net which is composed primarily of idle facilities expense, environmental remediation costs, gain (loss) on settlement of AROs, finance charges collected and net rental income (expense), was $23.9 million of expense for the first nine months of 2024 compared to $13.1 million of expense in the first nine months of 2023.
Previous wording
Other nonoperating income (expense), net was $8.9 million of expense for the first six months of 2024 compared to $1.3 million of income in the first six months of 2023.
Current wording
Other nonoperating income (expense), net was $12.7 million of expense for the first nine months of 2024 compared to $5.3 million of expense in the first nine months of 2023.
Previous wording
Net interest expense was $79.3 million in the first six months of 2024 compared to $95.7 million in the first six months of 2023. The decrease in interest expense reflects the first quarter 2024 redemption of $550.0 million senior notes due 2026.
Current wording
Net interest expense was $117.7 million in the first nine months of 2024 compared to $142.2 million in the first nine months of 2023. The decrease in interest expense reflects the first quarter 2024 redemption of $550.0 million senior notes due 2026.
Previous wording
Income tax expense from continuing operations was $123.4 million in the first six months of 2024 compared to $108.6 million in the first six months of 2023. The increase in tax expense was primarily due to a discrete benefit related to a 2022 business disposition recognized in the first six months of 2023.
Current wording
Income tax expense from continuing operations was $208.5 million in the first nine months of 2024 compared to $194.4 million in the first nine months of 2023. The increase in tax expense was primarily due to a goodwill impairment recorded in the third quarter of 2024, the majority of which was non-tax deductible, and a discrete benefit recognized in the first nine months of 2023 related to a 2022 business disposition, partially offset by lower pretax earnings.
Previous wording
DISCONTINUED OPERATIONS — First six months pretax loss from discontinued operations was $5.0 million in 2024 compared with a pretax loss of $7.9 million in 2023. Both periods include charges related to general and product liability costs, including legal defense costs, and environmental remediation costs associated with our former Chemicals business. For additional details, see Note 1 to the condensed consolidated financial statements under the caption Discontinued Operations.
Current wording
DISCONTINUED OPERATIONS — First nine months pretax loss from discontinued operations was $6.8 million in 2024 compared with $11.7 million in 2023. Both periods include charges related to general and product liability costs, including legal defense costs, and environmental remediation costs associated with our former Chemicals business. For additional details, see Note 1 to the condensed consolidated financial statements under the caption Discontinued Operations.
Previous wording
Inflationary pressures and labor constraints are factors that impact our operations. Although inflationary pressures can create short-term to medium-term headwinds, the combination of inflation and visibility of demand has created, and may continue to create, a favorable environment for price increases. Additionally, labor constraints have caused delays and inefficiencies in our operations as well as those of our customers. If labor constraints continue and demand remains positive, our operations may proceed at a slower pace, which may effectively extend the recovery while allowing us the opportunity to compound price, control costs and grow earnings.
Current wording
Inflationary pressures and labor constraints can be factors that impact our operations. Although inflationary pressures can create short-term to medium-term headwinds, the combination of inflation and visibility of demand may create a favorable environment for price increases. Additionally, labor constraints can cause delays and inefficiencies in our operations as well as those of our customers. If labor constraints continue, our operations may proceed at a slower pace, which may effectively extend the recovery while allowing us the opportunity to compound price, control costs and grow earnings.
Previous wording
Further, the Mexican government has taken actions adverse to our property and operations in Mexico. On May 5, 2022, Mexican government officials presented employees at our Calica operations in Quintana Roo, Mexico with arbitrary shutdown orders to immediately cease underwater quarrying and extraction operations. On May 13, 2022, the Mexican government suspended the three-year customs permit granted in March 2022 to Calica and began a proceeding that could result in the revocation of that permit. We strongly believe that the actions taken by Mexico are arbitrary and illegal, and we intend to vigorously pursue all lawful avenues available to us in order to protect our rights, under both Mexican and international law. For additional information regarding our Calica operations, see the NAFTA Arbitration section in Note 8 to thecondensed consolidated financial statements.
Current wording
Further, the Mexican government has taken actions adverse to our property and operations in Mexico. On May 5, 2022, Mexican government officials presented employees at our Calica operations in Quintana Roo, Mexico with arbitrary shutdown orders to immediately cease underwater quarrying and extraction operations. On May 13, 2022, the Mexican government suspended the three-year customs permit granted in March 2022 to Calica and began a proceeding that could result in the revocation of that permit. In September 2024, the Mexican government ordered the closure of Calica's already-suspended quarrying activities and the shutdown of certain activities at Calica's Punta Venado port facilities. On September 23, 2024, the President of Mexico signed a presidential decree declaring the entirety of Calica's properties as a "Natural Protected Area" (the "ANP Decree"). Among other provisions, the ANP Decree prohibits Calica from extracting petrous or construction materials from its properties. We strongly believe that the actions taken by Mexico are arbitrary and illegal, and we intend to vigorously pursue all lawful avenues available to us in order to protect our rights, under both Mexican and international law. For additional information regarding our Calica operations, see the NAFTA Arbitration section in Note 8 to thecondensed consolidated financial statements.
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Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
▪$1.1 million of tax charges related to a valuation allowance against Calica deferred tax assets, including NOL carryforwards
Previous report — wording carried elsewhere
▪pretax charges of $1.0 million associated with divested operations
Previous report — wording carried elsewhere
▪pretax net gain of $15.2 million related to the sale of real estate in Illinois
Previous report — wording carried elsewhere
▪pretax charges of $0.8 million associated with non-routine acquisitions