Despite difficult situation with Mexican government, Vulcan reports strong earnings

1523

EBITDA grew 11% for Vulcan in the second quarter, despite a sizable negative impact related to the shutdown of its aggregates operations in Mexico, among other issues.

Vulcan Materials Co. (NYSE: VMC) had $446 million in profit, up 12% from a year prior. That includes year-over-year increases of 8% in aggregates gross profit to $402 million and 78% in non-aggregates gross profit to $44 million. A 9% increase in aggregates pricing and 19% and 14% increases in asphalt and concrete prices helped drive higher profits for the company despite $74 million in elevated energy costs compared with a year prior and the shutdown of its Mexican operations in May as a result of the Mexican government’s refusal to reissue a needed customs permit.

The company remains unable to operate in Mexico.

“We are updating our full-year Adjusted EBITDA guidance range to reflect the considerable pricing momentum in our aggregates business as well as higher than expected energy-related cost inflation that is currently impacting each of our segments,” Vulcan CEO Tom Hill said. “Additionally, our outlook now reflects the previously disclosed impact ($80 million to $100 million) of the closure of our Mexico operations for the balance of 2022.”

Vulcan is also filing an ancillary claim regarding the shutdown of its Mexican operations with the NAFTA arbitration tribunal, which is not expected to issue a decision on the matter before 2023.

But it doesn’t appear likely that will slow the company much, per Mary Andrews Carlisle, who is slated to become Vulcan’s CFO this fall.


Source: El Financiero

Mexico Daily Post