Vulcan Materials said that it expects continued earnings growth in 2017. For 2017, the company expects to deliver Adjusted EBITDA of between $1.125 and $1.225 billion.
It expects aggregates shipments to grow between 5% and 8% and average selling prices to increase between 5% and 7%.
The company's fourth quarter results show price growth in aggregates and higher gross profits in the its asphalt and concrete business, partially offsetting the earnings effect from a 3.5% decline in aggregates shipments.
Net earnings were $113 million, or 27% higher than the prior year's fourth quarter, and adjusted EBITDA was $230 million, or 6%lower than the prior year's fourth quarter, the company said.
Tom Hill, chairman, Vulcan Materials, said, "Vulcan's operating momentum remains strong. While our fourth quarter results reflect a mid-December ramp-down of the construction season in many of our markets, which was earlier than in 2015, our solid full year results and outlook for 2017 demonstrate a continuation of longer-term trends in volume recovery, price increases, and margin expansion.
“Our daily aggregates shipment rates in October and November exceeded the prior year's strong comparison before falling off in the second half of December. In addition, and important to our forward outlook, key measures of both public and private construction starts have improved steadily since July.
“Adjusted for product and geographic mix, aggregates pricing growth over last year's fourth quarter was approximately 7 percent, in line with the full-year trend. Several temporary and timing-related factors combined to impact fourth quarter unit margin and flow-through comparisons. Full year results better represent the underlying trend and our forward expectations.
