Vulcan Materials posts downbeat results on subdued demand for construction supplies
Aug 6 (Reuters) -Construction supplies maker Vulcan Materials VMC.N on Tuesday missed Wall Street estimates for second-quarter revenue and profit and lowered its full-year adjusted EBITDA forecast as high interest rates put a strain on housing growth, keeping demand for the company's construction aggregates muted.
Shares of the company were down 2.7% in premarket trade.
Persistent inflation has driven up operational costs for corporates, while higher borrowing costs have slowed construction spending, hurting construction supplies makers such as Vulcan.
The company now expects 2024 adjusted EBITDA to be in a range of $2 billion to $2.15 billion, down from its previous forecast of $2.15 billion to $2.30 billion
"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," CEO Tom Hill said.
The company reported $2.01 billion in revenue for the quarter ended June 30. Analysts had, on average, expected $2.03 billion, according to LSEG data.
Vulcan's largest segment, construction aggregates, which include sand, gravel and crushed stone, reported a gross profit of $529 million, up 6% from a year earlier.
On an adjusted basis the company earned $2.31 per share for the reported quarter, missing estimates of $2.48 per share.
Reporting by Abhinav Parmar in Bengaluru; Editing by Shailesh Kuber
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