Vulcan Materials Company operates as a producer of construction aggregates, primarily including crushed stone, sand, and gravel. The company is also a major producer of asphalt mix and ready-mixed concrete. Strategy The company’s strategy is based on its strength in aggregates. Aggregates are used in most types of construction and in the production of asphalt mix and ready-mixed concrete. Its materials are used to build the roads, tunnels, bridges, railroads and airports that connect it, and to build the hospitals, churches, schools, shopping centers, and factories that are essential to its lives and the economy. The company’s business strategies include aggregates focus, coast-to-coast footprint, profitable growth, and effective land management. Segments The company has four operating segments organized around its principal product lines Aggregates; Asphalt Mix; Concrete; and Calcium. Aggregates This segment sells aggregates that are used as ballast for construction and maintenance of railroad tracks. The company sells riprap and jetty stone for erosion control along roads and waterways. In addition, stone can be used as a feedstock for cement and lime plants and for making various adhesives, fillers, and extenders. Coal-burning power plants use limestone in scrubbers to reduce harmful emissions. Limestone that is crushed to a fine powder can be sold as agricultural lime. The company serves both the public and the private sectors. Public Sector Construction: Public sector construction includes spending by federal, state, and local governments for highways, bridges and airports, as well as other infrastructure construction for sewer and waste disposal systems, water supply systems, dams, reservoirs, and other public construction projects. Private Sector Construction: The private sector construction markets include both nonresidential building construction and residential construction and are considerably more cyclical than public construction. Asphalt Mix This segment produces and sells asphalt mix in Arizona, California, New Mexico and Texas. This segment relies on the company’s reserves of aggregates, functioning essentially as a customer to its aggregates operations. Concrete This segment produces and sells ready-mixed concrete in Georgia, Maryland, New Mexico, Texas, Virginia, Washington D.C. and the Bahamas. In January 2015, the company swapped its ready-mixed concrete operations in California for asphalt mix operations, primarily in Arizona. In March 2014, the company sold its cement and concrete businesses in the Florida area. This segment relies on the company’s reserves of aggregates, functioning essentially as a customer to its aggregates operations. Aggregates are a major component in ready-mixed concrete, comprising approximately 78% by weight of this product. Ready-mixed concrete production also requires cement, which it purchases from third-party producers. Calcium This segment’s Brooksville, Florida facility produces calcium products for the animal feed, paint, plastics, water treatment and joint compound industries with calcium carbonate material mined at the Brooksville quarry. Customers The company’s products typically are sold to private industry and not directly to governmental entities. Although approximately 45% to 55% of its aggregates shipments have historically been used in publicly funded construction, such as highways, airports and government buildings, relatively insignificant sales are made directly to federal, state, county or municipal governments/agencies. Seasonality Almost all of the company’s products are produced and consumed outdoors. Normally, the highest sales and earnings are in the third quarter (year ended December 31, 2014) and the lowest are in the first quarter. Furthermore, the company’s sales and earnings are sensitive to national, regional and local economic conditions and particularly to cyclical swings in construction spending, primarily in the private sector. Environmental Costs and Governmental Regulation The company’s operations are subject to various federal, state and local laws and regulations relating to the protection of the environment and worker health and safety; examples include regulation of facility air emissions and water discharges, waste management, protection of wetlands, listed and threatened species, noise and dust exposure control for workers, and safety regulations under both Mine Safety and Health Administration and Occupational Safety and Health Administration. History Vulcan Materials Company was founded in 1909. The company, a New Jersey corporation, was incorporated in 2007.
vulcan materials co (VMC:New York)
1200 Urban Center Drive
Birmingham, AL 35242
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