Vulcan Materials,Martin Marietta Shipment Volumes Rise In March

Vulcan Materials Co. (VMC) and Martin Marietta Materials Inc. (MLM)--two top producers of construction aggregates--said shipments climbed in March, compared to a year ago, marking the first monthly increase in several years.

But both companies also reported wider first-quarter losses this week, saying demand was soft in January and February, partly because of bad weather.

Shares of Vulcan Materials slumped 6.8% in recent trading on Tuesday, to $54.88, while Martin Marietta shares were off 8.1%, at $91.72.

Despite the downturn in earnings, the companies cited the recent volume trends as signs of life in the heavy construction sector, as well as reason for optimism as government-stimulus projects finally get off drawing boards.

Martin Marietta Chief Executive Ward Nye said Tuesday that aggregates volume climbed 9% in March and was up by double-digits on a percentage basis in April.

Nye said in a prepared statement that the recent volume trends "coincided with the initiation of the construction season." He also said stimulus-funded projects are beginning.

Vulcan Chief Executive Don James provided much the same view, saying "the overall economy is improving" and stimulus projects are gaining momentum. Vulcan's aggregates shipments climbed 4% in March and 9% in April, he noted in a prepared statement.

But despite the relatively upbeat commentary, neither company increased its projections for full-year volume gains.

Vulcan reiterated it expects its aggregates volume to be flat to up 5% in 2010, while Martin Marietta reiterated its forecast for an increase of 2% to 4%.

Martin Marietta reported a first-quarter loss of $24.2 million, or 54 cents a share, compared to a loss of $5.8 million, or 14 cents, a year earlier. Revenue dropped 9% to $340.9 million.

Vulcan's net loss widened to $38.75 million, or 31 cents a share, from a loss of $32.78 million, or 30 cents a share. Revenue fell 17.8%, to $493.26 million.

-By Bob Sechler, Dow Jones Newswires; 512-394-0285; [e-mail]