(Reuters) – Construction supplies maker Vulcan Materials reported first-quarter profit above Wall Street estimates on Thursday, as price hikes helped offset the impact of bad weather on demand for aggregates such as gravel, sand and crushed stone.
Demand for construction supplies has risen since the Biden administration’s $1 trillion infrastructure package was rolled out in 2021 in a bid to improve roads, railways, and other transportation infrastructure.
“The pricing environment remains positive,” Vulcan CEO Tom Hill said in a statement.
However, unfavorable weather hit its aggregates business, its biggest segment by revenue, though the unit’s gross profit per ton rose.
The company reported $1.55 billion in revenue for the quarter ended March 31, down about 6.24% from a year earlier. Analysts had on average expected $1.49 billion, according to LSEG data.
On an adjusted basis, Vulcan earned a quarterly adjusted profit per share of 80 cents, compared with estimates of 74 cents per share.
The company reaffirmed its 2024 forecast, which includes a profit expectation of $1.07 billion to $1.19 billion.
(Reporting by Abhinav Parmar and Nathan Gomes in Bengaluru; Editing by Shinjini Ganguli and Devika Syamnath)
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