Vulcan Materials (NYSE: VMC) reported Q4 EPS of $1.25, $0.10 better than the analyst estimate of $1.15. Revenue for the quarter came in at $1.61 billion versus the consensus estimate of $1.54 billion.

Outlook:

• Regarding the Company's 2022 expectations, Mr. Hill said, "With a strong finish in the fourth quarter, we carry considerable momentum into the new year. Our markets are poised to outperform other parts of the country as demand continues to improve, and our industry-leading unit profitability increases with each passing quarter. We will continue to drive substantial value through the combination of our legacy business and the acquisition of USCR. Residential construction remains strong, and contract awards for private nonresidential buildings are growing again. On the public side, infrastructure investment is moving forward, and we are well positioned in attractive growth markets where the need is greatest. That said, labor shortages and supply chain disruptions are expected to continue to limit shipment growth in 2022. We expect the favorable pricing dynamics that improved throughout 2021 to be even better in 2022 and lead to attractive growth in aggregates unit profitability. Growing our aggregates unit profitability consistently during the last two years of pandemic-related disruptions demonstrates the resiliency of our business and our ability to capitalize on any changes in the macro environment."
• Management expectations for 2022 include:
• Net earnings attributable to Vulcan of between $800 to $890 million
• Adjusted EBITDA of between $1.720 to $1.820 billion
• High single-digit growth in Aggregates cash gross profit per ton ($7.43 in 2021)
• Total shipment growth of 5 to 7 percent (222.9 million tons in 2021)
• Freight-adjusted price increase of 6 to 8 percent ($14.87 per ton in 2021)
• Mid-single digit increase in freight-adjusted cash cost (freight-adjusted price less segment cash gross profit per ton; $7.44 per ton in 2021) due to higher energy-related costs (mostly diesel fuel) and continued inflationary pressures in other areas
• Cash gross profit of $300 to $325 million in Asphalt, Concrete and Calcium collectively
• Concrete segment expected to account for approximately 75 percent of the total due to a full year of results from USCR operations as well as margin improvement in the Company's legacy operations
• Asphalt earnings improvement driven by volume growth and price improvement. Higher prices for asphalt mix in the second half of 2022 are expected to reduce the earnings impact of higher liquid asphalt costs and natural gas used in production
• SAG expenses of $485 to $495 million, including a full year of USCR
• Interest expense of approximately $150 million
• Depreciation, depletion, accretion, and amortization expense of approximately $540 million
• An effective tax rate of 21 to 22 percent

For earnings history and earnings-related data on Vulcan Materials (VMC) click here.