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BIRMINGHAM, Ala., Feb. 14, 2013 /PRNewswire/ -- Vulcan Materials Company (NYSE: VMC), the nation's largest producer of construction aggregates, today announced earnings for 2012.

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Full Year Highlights

    --  Adjusted EBITDA increased $59 million on flat revenues.
    --  Gross profit increased $50 million and gross profit margins improved 210
        basis points.
    --  Aggregates segment gross profit margins improved 270 basis points from
        the prior year due to lower unit cost of sales and higher pricing.
            --  Aggregates shipments declined 1 percent and pricing increased 2
                percent.
            --  Cash gross profit per ton increased 5 percent.
    --  SAG expenses were $259 million versus $290 million in the prior year.
    --  Cash earnings were $210 million, an increase of 8 percent from the prior
        year.
    --  Gross cash proceeds of $174 million were realized from asset sales.
    --  The Company retired $135 million of debt as scheduled.

Don James, Chairman and Chief Executive Officer, said, "Our full year results demonstrate our employees' efforts in managing those aspects of the business that are under their control. Despite slightly weaker aggregates shipments, we achieved a 17 percent increase in Adjusted EBITDA, reflecting aggressive actions to reduce costs and to take advantage of pricing opportunities across the markets we serve."

Fourth Quarter 2012 Results Summary

    --  Fourth quarter EBITDA, including gains on sale of real estate and
        businesses, restructuring charges and exchange offer costs, was $137
        million as compared to $85 million in the prior year. Excluding these
        items, Adjusted EBITDA was $90 million versus $95 million in the prior
        year.
    --  Gross profit increased $5 million, or 7 percent, and gross profit
        margins improved 90 basis points on slightly lower net sales.
            --  Aggregates segment gross profit increased $2 million and margins
                improved 40 basis points despite a 3 percent decline in
                shipments versus the prior year.
            --  Aggregates pricing increased 4 percent versus the prior year.
            --  Volumes in ready-mixed concrete and cement increased 11 percent
                and 8 percent, respectively, due to improving levels of private
                construction.
    --  Earnings from continuing operations were $0.03 per diluted share versus
        a loss of $0.20 per diluted share in the prior year.

Commentary on Fourth Quarter 2012 Segment Results
Aggregates segment gross profit increased $2 million from the prior year's fourth quarter and gross profit margin expanded due in part to a 4 percent increase in pricing and despite a 3 percent decline in aggregates shipments. Aggregates shipments in Florida, North Carolina, Texas and Arizona showed strength, each increasing more than 10 percent versus the prior year. Some markets reported declines versus the prior year's fourth quarter, due in part to very favorable weather in December 2011, as compared to more normalized weather in 2012. Shipments in Virginia, California, Georgia and the Midwest were lower versus the prior year due in part to less large-project work than in the prior year. Virtually all of the Company's markets realized increased pricing. Improved productivity in key energy efficiency metrics helped offset a 7 percent increase in the unit cost for diesel fuel. Gross profit from non-aggregates businesses improved approximately $3 million to a loss of $2 million. Asphalt Mix segment gross profit was $7 million versus $5 million in the prior year. Unit profitability, as measured by materials margin, increased 13 percent despite a 4 percent increase in the unit cost of liquid asphalt. Asphalt volumes decreased 11 percent from the prior year's fourth quarter. Concrete segment gross profit improved $3 million due in part to an 11 percent increase in shipments. Cement segment earnings in the fourth quarter were a loss of $1 million versus earnings of $1 million in the prior year due primarily to the effects of an unscheduled production outage.

2013 Outlook
"Our outlook for another year of earnings growth is supported by improved pricing, aggressive cost control and some volume growth," said Mr. James. "Our expectations are for aggregates margins and profitability to continue to expand.

"We believe economic and construction-related fundamentals that drive demand for our products are continuing to improve from the historically low levels created by the economic downturn. The passage of the new federal highway bill in July 2012 is providing stability and predictability to future highway funding. Through the first three months of fiscal year 2013, obligation of federal funds for future highway projects is up sharply versus the prior year, a positive indicator of growth in future contract awards. The large increase in TIFIA (Transportation Infrastructure Finance and Innovation Act) funding contained in the new highway bill should also positively impact demand going forward.

"Leading indicators of private construction activity, specifically residential housing starts and contract awards for nonresidential buildings, continue to improve. Consequently, aggregates demand in private construction is growing. We are seeing tangible evidence of this growth in several key states, including Florida, Texas, California, Georgia and Arizona. Growth in residential construction has historically been a leading indicator of other construction end uses."

Mr. James continued, "Demand for aggregates in our markets is expected to grow by mid-single digits in 2013. Aggregates demand from residential construction is expected to increase double-digits while demand from private non-residential buildings is expected to increase high single-digits versus 2012. Our current expectation for growth in aggregates demand into public construction, including highways and other infrastructure, is limited given the lead time required from award of contract to the start of construction. As we look at the projects that could impact our 2013 aggregates volumes, we see a disproportionately greater number of large, discrete highway and industrial projects. The timing of these projects is difficult to predict at this point in the year. As a result, our full year shipments in 2013 are expected to increase 1 to 5 percent with most of the expected year-over-year growth to occur in the second half of the year, due in part to favorable weather in the first quarter of 2012.

"In keeping with our successful efforts to offset the earnings effect of lower volumes in recent quarters, we will continue our focus on reducing controllable costs and achieving improved pricing. In 2012, we achieved a 2 percent decrease in aggregates unit cost of sales despite the effects of lower volumes. The geographic breadth of pricing gains achieved in 2012 reinforces our expectations for continued growth in pricing in 2013. We expect full year freight-adjusted price growth of approximately 4 percent in 2013.

"Additionally, earnings in each of our non-aggregates segments should improve versus the prior year. Asphalt materials margin increased throughout 2012 and should contribute to earnings growth in 2013. Concrete volumes and materials margin are improving as housing starts continue recovering in key states. Cement earnings should improve in 2013 due mostly to lower production costs. As a result, collectively, full year earnings from these segments are expected to contribute significantly to earnings growth in 2013.

"We are on track to achieve our Profit Enhancement goals for 2013. These pricing and cost initiatives should allow us to more than offset the effects of higher costs of key materials and supplies and maintaining competitive wages. In 2012, we announced a number of asset sales that generated total gross proceeds of $174 million. The Company continues to work on additional asset sales. However, the ultimate timing of such transactions is difficult to predict. The Company remains committed to completing transactions designed to strengthen Vulcan's balance sheet, unlock capital for more productive uses, improve our operating results and create value for shareholders."

Conference Call
Vulcan will host a conference call at 10:00 a.m. CST on February 14, 2013. Investors and other interested parties in the U.S. may access the teleconference live by calling 866.711.8198 approximately 10 minutes before the scheduled start. International participants can dial 617.597.5327. The access code is 23352917. A live webcast and accompanying slides will be available via the Internet through Vulcan's home page at www.vulcanmaterials.com. The conference call will be recorded and available for replay approximately two hours after the call through February 21, 2013.

Vulcan Materials Company, a member of the S&P 500 Index, is the nation's largest producer of construction aggregates, a major producer of asphalt mix and concrete and a leading producer of cement in Florida.

FORWARD-LOOKING STATEMENT DISCLAIMER
This document contains forward-looking statements. Statements that are not historical fact, including statements about Vulcan's beliefs and expectations, are forward-looking statements. Generally, these statements relate to future financial performance, results of operations, business plans or strategies, projected or anticipated revenues, expenses, earnings (including EBITDA and other measures), dividend policy, shipment volumes, pricing, levels of capital expenditures, intended cost reductions and cost savings, anticipated profit improvements and/or planned divestitures and asset sales. These forward-looking statements are sometimes identified by the use of terms and phrases such as "believe," "should," "would," "expect," "project," "estimate," "anticipate," "intend," "plan," "will," "can," "may" or similar expressions elsewhere in this document. These statements are subject to numerous risks, uncertainties, and assumptions, including but not limited to general business conditions, competitive factors, pricing, energy costs, and other risks and uncertainties discussed in the reports Vulcan periodically files with the SEC.

Forward-looking statements are not guarantees of future performance and actual results, developments, and business decisions may vary significantly from those expressed in or implied by the forward-looking statements. The following risks related to Vulcan's business, among others, could cause actual results to differ materially from those described in the forward-looking statements: risks that Vulcan's intentions, plans and results with respect to cost reductions, profit enhancements and asset sales, as well as streamlining and other strategic actions adopted by Vulcan, will not be able to be realized to the desired degree or within the desired time period and that the results thereof will differ from those anticipated or desired; uncertainties as to the timing and valuations that may be realized or attainable with respect to intended asset sales; those associated with general economic and business conditions; the timing and amount of federal, state and local funding for infrastructure; the impact of a prolonged economic recession on Vulcan's industry, business and financial condition and access to capital markets; changes in the level of spending for private residential and nonresidential construction; the highly competitive nature of the construction materials industry; the impact of future regulatory or legislative actions; the outcome of pending legal proceedings; pricing of Vulcan's products; weather and other natural phenomena; energy costs; costs of hydrocarbon-based raw materials; healthcare costs; the amount of long-term debt and interest expense incurred by Vulcan; changes in Vulcan's effective tax rate; changes in interest rates; the impact of Vulcan's below investment grade debt rating on Vulcan's cost of capital; volatility in pension plan asset values which may require cash contributions to the pension plans; the impact of environmental clean-up costs and other liabilities relating to previously divested businesses; Vulcan's ability to secure and permit aggregates reserves in strategically located areas; Vulcan's ability to manage and successfully integrate acquisitions; Vulcan's increasing reliance on information technology; the potential of goodwill impairment; the potential impact of future legislation or regulations relating to climate change or greenhouse gas emissions or the definition of minerals; and other assumptions, risks and uncertainties detailed from time to time in the reports filed by Vulcan with the SEC.All forward-looking statements in this communication are qualified in their entirety by this cautionary statement. Vulcan disclaims and does not undertake any obligation to update or revise any forward-looking statement in this document except as required by law.

                                                                    Table A

 Vulcan Materials Company

 and Subsidiary Companies

                                (Amounts and shares in thousands,

                                except per share data)



                                Three Months Ended     Twelve Months Ended

 Consolidated Statements of     December 31            December 31
 Earnings

 (Condensed and unaudited)      2012       2011        2012         2011





 Net sales                      $ 574,885  $ 578,189   $ 2,411,243  $ 2,406,909

 Delivery revenues              33,546     36,437      156,067      157,641

 Total revenues                 608,431    614,626     2,567,310    2,564,550



 Cost of goods sold             495,679    503,834     2,077,217    2,123,040

 Delivery costs                 33,546     36,437      156,067      157,641

 Cost of revenues               529,225    540,271     2,233,284    2,280,681



 Gross profit                   79,206     74,355      334,026      283,869

 Selling, administrative and    66,873     71,702      259,140      289,993
 general expenses

 Gain on sale of property,
 plant & equipment

 and businesses, net            46,768     2,922       68,455       47,752

 Recovery from legal settlement -          -           -            46,404

 Restructuring charges          (540)      (9,994)     (9,557)      (12,971)

 Exchange offer costs           (49)       (2,227)     (43,380)     (2,227)

 Other operating income         (2,980)    1,118       (5,623)      (9,390)
 (expense), net

 Operating earnings (loss)      55,532     (5,528)     84,781       63,444



 Other nonoperating income, net 2,531      2,386       6,727        2

 Interest expense, net          52,928     53,346      211,926      217,184

 Earnings (loss) from
 continuing operations

 before income taxes            5,135      (56,488)    (120,418)    (153,738)

 Provision for (benefit from)   647        (30,545)    (66,492)     (78,483)
 income taxes

 Earnings (loss) from           4,488      (25,943)    (53,926)     (75,255)
 continuing operations

 Earnings (loss) on
 discontinued operations, net   (1,005)    (1,921)     1,333        4,477
 of tax

 Net earnings (loss)            $ 3,483    $ (27,864)  $ (52,593)   $ (70,778)

 Basic earnings (loss) per
 share:

 Continuing operations          $ 0.03     $ (0.20)    $ (0.42)     $ (0.58)

 Discontinued operations        -          (0.02)      0.01         0.03

 Net earnings (loss) per share  $ 0.03     $ (0.22)    $ (0.41)     $ (0.55)



 Diluted earnings (loss) per
 share:

 Continuing operations          $ 0.03     $ (0.20)    $ (0.42)     $ (0.58)

 Discontinued operations        -          (0.02)      0.01         0.03

 Net earnings (loss) per share  $ 0.03     $ (0.22)    $ (0.41)     $ (0.55)



 Weighted-average common shares

 outstanding:

 Basic                          129,954    129,502     129,745      129,381

 Assuming dilution              131,008    129,502     129,745      129,381

 Cash dividends declared per
 share

 of common stock                $ 0.01     $ 0.01      $ 0.04       $ 0.76

 Depreciation, depletion,
 accretion and

 amortization                   $ 78,568   $ 88,048    $ 331,959    $ 361,719

 Effective tax rate from        12.6%      54.1%       55.2%        51.0%
 continuing operations

                                                 Table B

 Vulcan Materials Company

 and Subsidiary Companies



                                    (Amounts in thousands, except per share
                                    data)

 Consolidated Balance Sheets        December 31  December 31

 (Condensed and unaudited)          2012         2011





 Assets

 Cash and cash equivalents          $ 275,478    $ 155,839

 Restricted cash                    -            81

 Accounts and notes receivable:

  Accounts and notes receivable,    303,178      321,391
  gross

  Less: Allowance for doubtful      (6,198)      (6,498)
  accounts

   Accounts and notes receivable,   296,980      314,893
   net

 Inventories:

  Finished products                 262,886      260,732

  Raw materials                     27,758       23,819

  Products in process               5,963        4,198

  Operating supplies and other      38,415       38,908

   Inventories                      335,022      327,657

 Current deferred income taxes      40,696       43,032

 Prepaid expenses                   21,713       21,598

 Assets held for sale               15,083       -

   Total current assets             984,972      863,100

 Investments and long-term          42,081       29,004
 receivables

 Property, plant & equipment:

  Property, plant & equipment,      6,666,617    6,705,546
  cost

  Less: Reserve for depr., depl. &  (3,507,432)  (3,287,367)
  amort

   Property, plant & equipment,     3,159,185    3,418,179
   net

 Goodwill                           3,086,716    3,086,716

 Other intangible assets, net       692,532      697,502

 Other noncurrent assets            161,113      134,813

   Total assets                     $ 8,126,599  $ 8,229,314







 Liabilities and Equity

 Current maturities of long-term    $ 150,602    $ 134,762
 debt

 Trade payables and accruals        113,337      103,931

 Other current liabilities          171,671      167,560

 Liabilities of assets held for     801          -
 sale

   Total current liabilities        436,411      406,253

 Long-term debt                     2,526,401    2,680,677

 Noncurrent deferred income taxes   657,367      732,528

 Deferred revenue                   73,583       -

 Other noncurrent liabilities       671,775      618,239

   Total liabilities                4,365,537    4,437,697

 Equity:

  Common stock, $1 par value        129,721      129,245

  Capital in excess of par value    2,580,209    2,544,740

  Retained earnings                 1,276,649    1,334,476

  Accumulated other comprehensive   (225,517)    (216,844)
  loss

   Total equity                     3,761,062    3,791,617

   Total liabilities and equity     $ 8,126,599  $ 8,229,314

                                                                     Table C

Vulcan Materials Company

and Subsidiary Companies



                                                         (Amounts in thousands)

                                                         Twelve Months Ended

Consolidated Statements of Cash Flows                    December 31

(Condensed and unaudited)                                2012        2011



Operating Activities

Net loss                                                 $ (52,593)  $ (70,778)

Adjustments to reconcile net loss to

 net cash provided by operating activities:

  Depreciation, depletion, accretion and amortization    331,959     361,719

  Net gain on sale of property, plant & equipment and    (78,654)    (58,808)
  businesses

  Proceeds from sale of future production, net of        73,583      -
  transaction costs

  Contributions to pension plans                         (4,509)     (4,892)

  Share-based compensation                               17,474      18,454

  Deferred tax provision                                 (69,830)    (93,739)

  Cost of debt purchase                                  -           19,153

  Changes in assets and liabilities before initial

   effects of business acquisitions and dispositions     20,378      (11,906)

Other, net                                               667         9,840

   Net cash provided by operating activities             238,475     169,043





Investing Activities

Purchases of property, plant & equipment                 (93,357)    (98,912)

Proceeds from sale of property, plant & equipment        80,829      13,675

Proceeds from sale of businesses, net of transaction     21,166      74,739
costs

Payment for businesses acquired, net of acquired cash    -           (10,531)

Other, net                                               1,761       1,550

   Net cash provided by (used for) investing activities  10,399      (19,479)



Financing Activities

Net short-term payments                                  -           (285,500)

Payment of current maturities and long-term debt         (134,780)   (743,075)

Cost of debt purchase                                    -           (19,153)

Proceeds from issuance of long-term debt                 -           1,100,000

Debt issuance costs                                      -           (27,426)

Proceeds from settlement of interest rate swap           -           23,387
agreements

Proceeds from issuance of common stock                   -           4,936

Dividends paid                                           (5,183)     (98,172)

Proceeds from exercise of stock options                  10,462      3,615

Other, net                                               266         122

   Net cash used for financing activities                (129,235)   (41,266)



Net increase in cash and cash equivalents                119,639     108,298

Cash and cash equivalents at beginning of year           155,839     47,541

Cash and cash equivalents at end of year                 $ 275,478   $ 155,839

                                                                    Table D

Segment Financial Data and Unit Shipments

                               (Amounts in thousands, except per unit data)



                               Three Months Ended       Twelve Months Ended

                               December 31              December 31

                               2012           2011      2012        2011

Total Revenues



 Aggregates segment (a)        $411,496       $409,251  $1,729,419  $1,734,005

 Intersegment sales            (35,311)       (30,802)  (148,230)   (142,572)

 Net sales                     376,185        378,449   1,581,189   1,591,433

 Concrete segment (b)          103,085        92,862    406,370     374,671

 Intersegment sales            -              -         -           -

 Net sales                     103,085        92,862    406,370     374,671

 Asphalt Mix segment           84,860         94,530    378,126     398,962

 Intersegment sales            -              -         -           -

 Net sales                     84,860         94,530    378,126     398,962

 Cement segment (c)            20,998         19,429    84,567      71,920

 Intersegment sales            (10,243)       (7,081)   (39,009)    (30,077)

 Net sales                     10,755         12,348    45,558      41,843

 Total

 Net sales                     574,885        578,189   2,411,243   2,406,909

 Delivery revenues             33,546         36,437    156,067     157,641

 Total revenues                $608,431       $614,626  $2,567,310  $2,564,550



Gross Profit



 Aggregates                    $ 81,332       $ 79,196  $ 352,100   $ 306,203

 Concrete                      (8,384)        (11,041)  (38,234)    (43,368)

 Asphalt Mix                   7,472          5,157     22,970      25,575

 Cement                        (1,214)        1,043     (2,810)     (4,541)

 Total gross profit            $ 79,206       $ 74,355  $ 334,026   $ 283,869



Depreciation, depletion, accretion and
amortization



 Aggregates                    $ 57,044       $ 63,993  $ 240,704   $ 266,968

 Concrete                      9,211          11,556    41,316      47,659

 Asphalt Mix                   2,097          2,132     8,687       7,740

 Cement                        4,508          4,897     18,055      17,801

 Other                         5,708          5,470     23,197      21,551

 Total DDA&A                   $ 78,568       $ 88,048  $ 331,959   $ 361,719



Unit Shipments



 Aggregates customer tons      30,963         32,005    130,520     132,394

 Internal tons (d)             2,441          2,564     10,440      10,637

 Aggregates - tons             33,404         34,569    140,960     143,031



 Ready-mixed concrete - cubic  1,075          972       4,223       3,883
 yards

 Asphalt Mix - tons            1,493          1,686     6,701       7,208





 Cement customer tons          114            129       442         380

 Internal tons (d)             130            97        497         413

 Cement - tons                 244            226       939         793



Average Unit Sales Price (including internal
sales)



 Aggregates (freight-adjusted) $ 10.45        $ 10.07   $ 10.44     $ 10.25
 (e)

 Ready-mixed concrete          $ 91.38        $ 91.50   $ 92.19     $ 92.16

 Asphalt Mix                   $ 56.07        $ 55.29   $ 55.33     $ 54.71

 Cement                        $ 77.20        $ 69.21   $ 77.77     $ 73.66

(a) Includes crushed stone, sand and gravel, sand, other aggregates, as well as
transportation and service revenues associated with the aggregates

business

(b) Includes ready-mixed concrete, concrete block, precast
concrete, as well as building materials purchased for resale

(c) Includes cement and calcium products

(d) Represents tons shipped primarily to our downstream operations (i.e.,
asphalt mix and ready-mixed concrete). Sales from internal shipments

are eliminated in net sales presented above and in the
accompanying Condensed Consolidated Statements of Earnings

(e) Freight-adjusted sales price is calculated as total sales dollars
(internal and external) less freight to remote distribution sites divided by
total

sales units (internal and external)

                                                                   Table E

1. Supplemental Cash Flow Information



Supplemental information referable to the Condensed Consolidated Statements of
Cash Flows

for the twelve months ended December 31 is summarized below:

                                                        (Amounts in thousands)

                                                        2012       2011





Supplemental Disclosure of Cash Flow Information

Cash paid (refunded) during the period for:

 Interest                                               $ 207,745  $ 205,088

 Income taxes                                           20,374     (29,874)



Supplemental Schedule of Noncash Investing and
Financing Activities

Liabilities assumed in business acquisition             -          13,912

Accrued liabilities for purchases of property, plant &  9,627      7,226
equipment

Fair value of noncash assets and liabilities exchanged  -          25,994

Fair value of equity consideration for business         -          18,529
acquisition



2. Reconciliation of Non-GAAP Measures



Generally Accepted Accounting Principles (GAAP) does not define "free cash
flow," "aggregates segment cash gross profit," "Earnings Before Interest,
Taxes, Depreciation and Amortization" (EBITDA) and "cash earnings." Thus, free
cash flow should not be considered as an alternative to net cash provided by
operating activities or any other liquidity measure defined by GAAP. Likewise,
aggregates segment cash gross profit, EBITDA and cash earnings should not be
considered as alternatives to earnings measures defined by GAAP. We present
these metrics for the convenience of investment professionals who use such
metrics in their analyses, and for shareholders who need to understand the
metrics we use to assess performance and to monitor our cash and liquidity
positions. The investment community often uses these metrics as indicators of
a company's ability to incur and service debt. We use free cash flow, cash
gross profit, EBITDA, cash earnings and other such measures to assess the
operating performance of our various business units and the consolidated
company. We do not use these metrics as a measure to allocate resources.
Reconciliations of these metrics to their nearest GAAP measures are presented
below:



Free Cash Flow



Free cash flow deducts purchases of property, plant & equipment from net cash
provided by operating activities



                                                        (Amounts in thousands)

                                                        Twelve Months Ended

                                                        December 31

                                                        2012       2011



Net cash provided by operating activities               $ 238,475  $ 169,043

Purchases of property, plant & equipment                (93,357)   (98,912)

Free cash flow                                          $ 145,118  $ 70,131



Aggregates Segment Cash Gross Profit



Aggregates segment cash gross profit adds back noncash charges for
depreciation, depletion, accretion and amortization (DDA&A) to aggregates
segment gross profit

                         (Amounts in thousands)

                         Three Months Ended             Twelve Months Ended

                         December 31                    December 31

                         2012       2011                2012       2011



Aggregates segment gross $ 81,332   $ 79,196            $ 352,100  $ 306,203
profit

Aggregates segment DDA&A 57,044     63,993              240,704    266,968

Aggregates segment cash  $ 138,376  $ 143,189           $ 592,804  $ 573,171
gross profit

                                                                      Table F



Reconciliation of Non-GAAP Measures (Continued)



EBITDA and Cash Earnings



EBITDA is an acronym for Earnings Before Interest, Taxes, Depreciation and
Amortization. Cash earnings adjusts EBITDA for net interest expense and current
taxes.



                                   (Amounts in thousands)

                                   Three Months Ended     Twelve Months Ended

                                   December 31            December 31

                                   2012       2011        2012        2011



Reconciliation of Net Loss to
EBITDA and Cash Earnings



Net earnings (loss)                $ 3,483    $ (27,864)  $ (52,593)  $ (70,778)

Provision for (benefit from)       647        (30,545)    (66,492)    (78,483)
income taxes

Interest expense, net              52,928     53,346      211,926     217,184

(Earnings) loss on discontinued    1,005      1,921       (1,333)     (4,477)
operations, net of tax

EBIT                               58,063     (3,142)     91,508      63,446

Plus: Depreciation, depletion,     78,568     88,048      331,959     361,719
accretion and amortization



EBITDA                             $ 136,631  $ 84,906    $ 423,467   $ 425,165

Less: Interest expense, net        (52,928)   (53,346)    (211,926)   (217,184)

Current taxes                      (3,983)    (4,041)     (1,913)     (14,318)

Cash earnings                      $ 79,720   $ 27,519    $ 209,628   $ 193,663



Adjusted EBITDA and Adjusted EBIT



EBITDA                             $ 136,631  $ 84,906    $ 423,467   $ 425,165

Recovery from legal settlement     -          -           -           (46,404)

Gain on sale of real estate and    (46,801)   (2,482)     (65,122)    (42,141)
businesses

Restructuring charges              540        9,994       9,557       12,971

Exchange offer costs               49         2,227       43,380      2,227

Adjusted EBITDA                    $ 90,419   $ 94,645    $ 411,282   $ 351,818

Less: Depreciation, depletion,     78,568     88,048      331,959     361,719
accretion and amortization

Adjusted EBIT                      $ 11,851   $ 6,597     $ 79,323    $ (9,901)

EBITDA Bridge                                    Three Months    Twelve Months
                                                 Ended           Ended

(Amounts in millions)                            December 31     December 31

                                                 EBITDA          EBITDA

Continuing Operations - 2011 Actual              $ 85            $ 425

Plus: Recovery from legal settlement             -               (46)

      Gain on sale of real estate and            (2)             (42)
      businesses

      Restructuring charges                      10              13

      Exchange offer costs                       2               2

2011 Adjusted EBITDA from continuing operations  95              352



Increase / (Decrease) due to:

Aggregates: Volumes                              (6)             (12)

            Selling prices                       13              27

            Lower costs and other items          (12)            5

Concrete                                         -               (2)

Asphalt Mix                                      2               (2)

Cement                                           (2)             3

Lower selling, administrative and general        5               31
expenses

Other                                            (4)             9

2012 Adjusted EBITDA from continuing operations  91              411



Plus: Gain on sale of real estate and            47              65
      businesses

      Restructuring charges                      (1)             (10)

      Exchange offer costs                       -               (43)

Continuing Operations - 2012 Actual              $ 137           $ 423

$vulcan\_materials\_company\_logo.jpg$

SOURCE Vulcan Materials Company

Investor Contact: Mark Warren, 1-205-298-3220; Media Contact: David Donaldson, 1-205-298-3220

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