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Vulcan misses its quarterly estimate as adverse weather dampens the construction

Vulcan Materials reported second-quarter revenue, profit and earnings below Wall Street expectations on Thursday as weather disruptions caused construction to slow down and reduced demand for construction materials.

The demand for construction materials has been hit by persistent inflation which has driven up the operational costs of corporations. Construction spending was also affected by higher borrowing costs.

Tom Hill, CEO of the company, said that despite weather challenges our pricing discipline and cost performance led to an increase of 13% in aggregates gross profit per ton.

The company reported $2.10billion in revenue for the three months ended June 30. This is up 4.4% compared to a year ago. According to LSEG data, analysts had on average expected $2.19billion.

Vulcan Materials, based in Birmingham, Alabama, sells crushed stone, sand and gravel and supplies asphalt to six states, including Texas and California. The company also produces ready-mixed cement in California, Maryland and Virginia. Materials are delivered by barge, rail, truck and ship.

Vulcan's adjusted profit per share was $2.45. Analysts had predicted a profit per share of $2.54 on average.

CEO Hill said that "our execution in the first six months of the year, along with the acceleration of new highway construction in our markets, supports our outlook for the full-year to deliver $2.35-2.55 billion in Adjusted EBITDA", he added. Reporting by Abhinav Paramar in Bengaluru, Editing by Maju Sam

(source: Reuters)