EX-99.1 2 v173524_ex99-1.htm EXHIBIT 99.1 Unassociated Document
February 8, 2010
FOR IMMEDIATE RELEASE
Investor Contact:  Mark Warren (205) 298-3220
Media Contact:  David Donaldson (205) 298-3220
 
VULCAN ANNOUNCES FOURTH QUARTER RESULTS

Birmingham, Alabama – February 8, 2010 – Vulcan Materials Company (NYSE:VMC), the nation’s largest producer of construction aggregates, announced results today for the fourth quarter and full year ended December 31, 2009.

Fourth Quarter Summary and Comparisons with the Prior Year
 
·
Net earnings from continuing operations were a loss of $13 million, or $0.10 per diluted share.
 
·
Cash earnings from continuing operations were $67 million.
 
·
Aggregates shipments declined 23 percent, reducing earnings $0.57 per diluted share.
 
·
Aggregates pricing increased 5 percent.
 
·
Aggregates cash fixed costs decreased 8 percent.
 
·
Selling, administrative and general expenses decreased 7 percent.
 
·
Total contract awards for highways increased 13 percent in Vulcan-served states.

Commenting for the Company, Don James, Vulcan’s Chairman and Chief Executive Officer, stated, “Our employees continue to run the business in a cost-efficient manner, maximizing our cash generation during the economic downturn.  Their efforts in the fourth quarter contributed to further reductions in cash fixed costs in our operations as well as reductions in overhead expenses.  Continued weakness in private construction activity, uncertainty surrounding the timing and amount of either a formal extension or reauthorization of the multi-year federal highway program, and extremely wet weather suppressed momentum gained from stimulus-related construction.  Nonetheless, we finished the year with strong cash generation.  For the full year 2009, free cash flow was $343 million, an increase of $261 million from the prior year, and cash earnings per ton of aggregates remained in-line with the prior year.

“We continue to believe that 2010 will be the biggest year for stimulus-related highway construction.  Economic stimulus funds of $27.5 billion designated for highway projects under the American Recovery and Reinvestment Act of 2009 buoyed contract awards for highways in the second half of 2009.  Despite the failure of Congress to pass a fully-funded extension of SAFETEA-LU, the previous highway authorization that expired on September 30, 2009, contract awards for highways in the fourth quarter increased 9 percent from the prior year.  Vulcan-served states, which were apportioned 55 percent more funds than other states, generally have lagged the rest of the country in awarding contracts and starting stimulus-related construction.  In the fourth quarter, however, contract awards for highway projects in our states increased 13 percent from the prior year versus a 2 percent increase in other states.  We are encouraged by the increased award activity and are optimistic that stimulus-related highway projects in Vulcan-served states, after a slow start, are now moving forward and will benefit demand for our products in 2010.”
 

 
 Page 2
February 8, 2010
FOR IMMEDIATE RELEASE
 
Fourth Quarter Operating Results Commentary
Fourth quarter earnings for aggregates were lower versus the prior year as the impact of reduced shipments more than offset the earnings benefit from improved prices and cost control measures.  Aggregates shipments declined 23 percent from the prior year due to weak demand and extremely wet weather in most key markets.  Lower aggregates volumes reduced fourth quarter EBITDA by approximately $69 million versus the prior year.  Most markets realized price improvement from the prior year. The overall price increase benefited somewhat from a product mix shift to more aggregates for highway construction.

Key Vulcan-served markets in the Mid-Atlantic, Southeast, Midwest, and Southwest regions were hampered by an unusually large amount of rainfall throughout the quarter.  Additionally, aggregates volumes were negatively affected by the varied timing of spending of stimulus-related funding, the uncertainty regarding timing and duration of an extension of the federal highway bill as well as the lack of visibility regarding timing for ultimate passage of a new multi-year highway bill.  Construction activity on stimulus-related highway projects has varied widely in Vulcan-served states and in certain key states lagged the rest of the country.   Florida, Virginia, California, and Georgia spent less than 10 percent of their highway-related stimulus funds by the end of 2009.  Conversely, Illinois, Tennessee, and North Carolina spent 41, 36 and 23 percent, respectively, of stimulus funds by year end.

Segment earnings in asphalt and concrete were a slight loss due to the earnings effects of lower volumes and lower materials margins.  Asphalt materials margins in the fourth quarter were lower than the prior year as lower selling prices for asphalt mix more than offset lower costs, including a 29 percent decline in the costs for liquid asphalt.

Selling, administrative and general (SAG) expenses in the fourth quarter declined $6 million from the prior year.  This year-over-year decline in overhead costs is due mostly to reductions in employee-related expenses, which more than offset a year-over-year increase in project costs of $2.6 million related to the replacement of legacy IT systems.  Additionally, the current year’s fourth quarter included expenses of $8.5 million for the fair market value of donated real estate as compared to $5.1 million in the prior year.  Excluding the effects of donated real estate from both years, SAG expenses declined 11 percent versus the prior year’s fourth quarter.

Full Year Summary and Comparisons with the Prior Year
 
·
Net earnings were $30 million, including $19 million from continuing operations.
 
·
Cash earnings were $369 million from continuing operations and $12 million from discontinued operations.
 
·
Aggregates shipments declined 26 percent, reducing pretax earnings $334 million.
 
·
Aggregates pricing increased 3 percent.
 
·
Cash provided by operating activities was $453 million compared with $435 million in the prior year.
 
·
Full year capital spending was $110 million compared with $353 million in the prior year.
 
·
Free cash flow was $343 million compared with $82 million in the prior year.
 
·
Total debt was reduced by $810 million in 2009.

Commenting on the full year, Mr. James stated, “Throughout the period of protracted decline in demand for construction materials, Vulcan employees have managed costs aggressively.  In 2009, their efforts further rationalized production and reduced operating hours, thereby offsetting some of the cost impact related to lower volumes.  Their efforts also contributed to an increase in free cash flow, demonstrating the cash generation ability of our business even in the midst of an economic recession.”
 

 
 Page 3
February 8, 2010
FOR IMMEDIATE RELEASE
 
All results are unaudited.

Outlook Highlights and Commentary
Commenting on the Company’s outlook, Mr. James stated, “Overall, the construction environment remains challenging, reflecting continued weak private nonresidential construction activity and uncertainty regarding the timing and amount of a new multi-year federal highway program.

“Since May of last year, highway construction awards have been buoyed by stimulus-related funding.  Through December 2009, the Federal Highway Administration reported approximately $15 billion of stimulus-related highway projects under construction with $5.6 billion of these stimulus funds having been paid to contractors for work performed.  During this same period, Vulcan-served states lagged the rest of the country in awarding and starting stimulus-related highway construction projects.  These differences in awarding projects and spending patterns are due in part to the types of projects planned and to the proportion sub-allocated to Metropolitan Planning Organizations less accustomed to implementing a large number of projects.  The above-average increase in our states in fourth quarter contract awards for highways provides some encouragement that construction activity in our states should improve in 2010.

“Overall, our outlook for aggregates demand in 2010 reflects an increase in highway and other infrastructure-related construction activity due primarily to stimulus-related funding.  While we have assumed that regular federal funding for highways will remain at an annualized level consistent with fiscal year 2009 under SAFETEA-LU, Congress will need to act quickly to restore fiscal year 2010 funding levels and contract authority prior to the start of the construction season.  Additionally, residential construction activity should increase year-over-year in 2010, albeit from low levels.  Further weakness is expected in private nonresidential construction.  As a result, aggregates volumes are expected to be flat to up 5 percent from 2009 levels.  For the full year 2010, we expect aggregates pricing to improve 2 to 3 percent.

“In our asphalt business, we expect sales volumes to increase approximately 5 percent from 2009 levels.  Pricing for asphalt mix is expected to increase from 2009 levels but not enough to offset projected higher prices for liquid asphalt and aggregates.  As a result, we expect lower material margins in asphalt when compared with the prior year.  In concrete, we expect sales volumes to remain flat with the prior year and pricing to decline modestly, reflecting continued weakness in private nonresidential construction.

“Debt reduction and achieving target debt ratios remain a priority use of cash flows.  For the full year, we expect capital spending of approximately $125 million, up from $110 million spent in 2009 and down sharply from the $353 million spent in 2008.

“Our available production capacity and ongoing efforts to improve cash margins position Vulcan to participate efficiently and effectively in the $50 to $60 billion of stimulus-related construction, including significant remaining portions of the $27 billion for highways and bridges.  We expect 2010 to be the largest year of stimulus-related highway demand for our products followed by another solid year in 2011.  By that time, we expect demand from private construction activity to be improving, accelerating the earnings leverage from our improved cost structure and disciplined approach to pricing.”
 

 
 Page 4
February 8, 2010
FOR IMMEDIATE RELEASE
 
Conference Call
Vulcan will host a conference call at 10:00 a.m. CST on February 9, 2010.  Investors and other interested parties in the U.S. may access the teleconference live by calling 888.713.4218 approximately 10 minutes before the scheduled start.  International participants can dial 617.213.4870.  The access code is 41673485.  A live webcast 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 16, 2010.

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.

Certain matters discussed in this release, including expectations regarding future performance, contain forward-looking statements that are subject to assumptions, risks and uncertainties that could cause actual results to differ materially from those projected.  These assumptions, risks and uncertainties include, but are not limited to, those associated with general economic and business conditions; changes in interest rates; the timing and amount of federal, state and local funding for infrastructure, including the federal stimulus funds; changes in the level of spending for residential and private 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; 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 the Company; volatility in pension plan asset values which may require cash contributions to the pension plans; the timing and amount of any future payments to be received under the 5CP earn-out contained in the agreement for the divestiture of the Company's Chemicals business; the impact of environmental clean-up costs and other liabilities relating to previously divested businesses; the Company’s ability to secure and permit aggregates reserves in strategically located areas; the Company’s ability to manage and successfully integrate acquisitions; the impact of the global financial crisis on our business and financial condition and access to the capital markets; the potential impact of future legislation or regulations relating to climate change or greenhouse gas emissions; and other assumptions, risks and uncertainties detailed from time to time in the Company’s SEC reports, including the report on Form 10-K for the year.  Forward-looking statements speak only as of the date hereof, and Vulcan assumes no obligation to publicly update such statements.
 

 
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 Earnings
 
December 31
   
December 31
 
(Condensed and unaudited)
  
2009
   
2008
   
2009
   
2008
 
                         
Net sales
  $ 555,767     $ 756,523     $ 2,543,707     $ 3,453,081  
Delivery revenues
    34,377       42,676       146,783       198,357  
Total revenues
    590,144       799,199       2,690,490       3,651,438  
                                 
Cost of goods sold
    487,726       607,333       2,097,745       2,703,369  
Delivery costs
    34,377       42,676       146,783       198,357  
Cost of revenues
    522,103       650,009       2,244,528       2,901,726  
                                 
Gross profit
    68,041       149,190       445,962       749,712  
Selling, administrative and general expenses
    82,979       88,863       321,608       342,584  
Goodwill impairment
    -       252,664       -       252,664  
Gain on sale of property, plant & equipment
                               
and businesses, net
    16,451       7,537       27,104       94,227  
Other operating income (expense), net
    (122 )     371       (3,006 )     411  
Operating earnings (loss)
    1,391       (184,429 )     148,452       249,102  
                                 
Other income (expense), net
    730       (1,322 )     5,307       (4,357 )
Interest income
    367       502       2,282       3,126  
Interest expense
    43,318       46,583       175,262       172,813  
Earnings (loss) from continuing operations
                               
before income taxes
    (40,830 )     (231,832 )     (19,221 )     75,058  
Provision (benefit) for income taxes
    (28,248 )     (19,673 )     (37,869 )     71,691  
Earnings (loss) from continuing operations
    (12,582 )     (212,159 )     18,648       3,367  
Earnings (loss) on discontinued operations, net of tax
    (767 )     (661 )     11,666       (2,449 )
Net earnings (loss)
   $ (13,349 )   $ (212,820 )   $ 30,314     $ 918  
Basic earnings (loss) per share:
                               
Continuing operations
  $ (0.10 )   $ (1.92 )   $ 0.16     $ 0.03  
Discontinued operations
    (0.01 )     (0.01 )     0.09       (0.02 )
Net earnings (loss) per share
  $ (0.11 )   $ (1.93 )   $ 0.25     $ 0.01  
                                 
Diluted earnings (loss) per share:
                               
Continuing operations
  $ (0.10 )   $ (1.92 )   $ 0.16     $ 0.03  
Discontinued operations
    (0.01 )     (0.01 )     0.09       (0.02 )
Net earnings (loss) per share
  $ (0.11 )   $ (1.93 )   $ 0.25     $ 0.01  
                                       
Weighted-average common shares
                               
     outstanding:
                               
Basic
    125,889       110,394       118,891       109,774  
Assuming dilution
    125,889       110,394       119,430       110,954  
Cash dividends declared per share
                               
of common stock
  $ 0.25     $ 0.49     $ 1.48     $ 1.96  
Depreciation, depletion, accretion and
                               
amortization from continuing operations
  $ 96,454     $ 97,570     $ 394,612     $ 389,060  
Effective tax rate from continuing operations
       69.2 %      8.5 %      197.0 %      95.5 %


Table B
 
Vulcan Materials Company
and Subsidiary Companies
 
 
 
   
(Amounts in thousands)
 
             
Consolidated Balance Sheets
 
December 31
   
December 31
 
(Condensed and unaudited)
  
2009
     
2008
 
             
Assets
           
Cash and cash equivalents
  $ 22,265     $ 10,194  
Medium-term investments
    4,111       36,734  
Accounts and notes receivable:
               
Accounts and notes receivable, gross
    276,746       365,688  
Less: Allowance for doubtful accounts
    (8,722 )     (8,711 )
Accounts and notes receivable, net
    268,024       356,977  
Inventories:
               
Finished products
    261,752       295,525  
Raw materials
    21,807       28,568  
Products in process
    3,907       4,475  
Operating supplies and other
    37,567       35,743  
Inventories
    325,033       364,311  
Deferred income taxes
    57,967       71,205  
Prepaid expenses
    51,821       54,469  
Assets held for sale
    15,072       -  
Total current assets
    744,293       893,890  
Investments and long-term receivables
    33,283       27,998  
Property, plant & equipment:
               
Property, plant & equipment, cost
    6,653,261       6,635,873  
Less: Reserve for depr., depl. & amort.
    (2,778,590 )     (2,480,061 )
Property, plant & equipment, net
    3,874,671       4,155,812  
Goodwill
    3,093,979       3,085,468  
Other intangible assets
    682,643       673,792  
Other assets
    105,086       79,664  
Total assets
  $ 8,533,955     $ 8,916,624  
                 
                 
Liabilities and Shareholders' Equity
               
Current maturities of long-term debt
  $ 385,381     $ 311,685  
Short-term borrowings
    236,512       1,082,500  
Trade payables and accruals
    121,324       147,104  
Other current liabilities
    113,109       121,777  
Liabilities of assets held for sale
    369       -  
Total current liabilities.
    856,695       1,663,066  
Long-term debt
    2,116,120       2,153,588  
Deferred income taxes
    888,272       920,475  
Other noncurrent liabilities
    620,846       625,743  
Total liabilities
    4,481,933       5,362,872  
Shareholders' equity:
               
Common stock, $1 par value
    125,912       110,270  
Capital in excess of par value
    2,368,228       1,734,835  
Retained earnings
    1,752,240       1,893,929  
Accumulated other comprehensive loss
    (194,358 )     (185,282 )
Shareholders' equity
    4,052,022       3,553,752  
Total liabilities and shareholders' equity
   $ 8,533,955       $ 8,916,624  


 
Table C
 
Vulcan Materials Company
and Subsidiary Companies
 
   
(Amounts in thousands)
 
Twelve Months Ended
 
Consolidated Statements of Cash Flows
 
December 31
 
(Condensed and unaudited)
  
2009
     
2008
 
             
             
Operating Activities
           
Net earnings
  $ 30,314     $ 918  
Adjustments to reconcile net earnings to
               
net cash provided by operating activities:
               
Depreciation, depletion, accretion and amortization
    394,612       389,060  
Goodwill impairment
    -       252,664  
Net gain on sale of property, plant & equipment and businesses
    (27,916 )     (94,227 )
Contributions to pension plans
    (27,616 )     (3,127 )
Share-based compensation
    23,120       19,096  
Excess tax benefits from share-based compensation
    (2,072 )     (11,209 )
Deferred tax provision
    (43,773 )     (19,756 )
Changes in assets and liabilities before initial
               
effects of business acquisitions and dispositions
    90,275       (85,171 )
Other, net
    16,091       (13,063 )
    Net cash provided by operating activities
    453,035       435,185  
                 
Investing Activities
               
Purchases of property, plant & equipment
    (109,729 )     (353,196 )
Proceeds from sale of property, plant & equipment
    17,750       25,542  
Proceeds from sale of businesses
    16,075       225,783  
Payment for businesses acquired, net of acquired cash
    (36,980 )     (84,057 )
Reclassification from cash equivalents to medium-term investments
    -       (36,734 )
Redemption of medium-term investments
    33,282       -  
Proceeds from loan on life insurance policies
    -       28,646  
Other, net
    (400 )     4,976  
Net cash used for investing activities
    (80,002 )     (189,040 )
                 
Financing Activities
               
Net short-term payments
    (847,963 )     (1,009,000 )
Payment of current maturities of long-term debt
    (311,724 )     (48,794 )
Payment of long-term debt
    (50,000 )     -  
Proceeds from issuance of long-term debt, net of discounts
    397,660       949,078  
Debt issuance costs
    (3,033 )     (5,633 )
Settlements of forward starting swaps
    -       (32,474 )
Proceeds from issuance of common stock
    606,546       55,072  
Dividends paid
    (171,468 )     (214,783 )
Proceeds from exercise of stock options
    17,327       24,602  
Excess tax benefits from share-based compensation
    2,072       11,209  
Other, net
    (379 )     (116 )
Net cash used for financing activities
    (360,962 )     (270,839 )
                 
Net increase (decrease) in cash and cash equivalents
    12,071       (24,694 )
Cash and cash equivalents at beginning of year
    10,194       34,888  
Cash and cash equivalents at end of year
   $ 22,265       $ 10,194  


 
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
 
   
2009
   
2008
   
2009
   
2008
 
Total Revenues
                       
Aggregates (a)
                       
Segment revenues
  $ 406,246     $ 529,531     $ 1,838,599     $ 2,406,800  
Intersegment sales
    (37,162 )     (47,254 )     (165,210 )     (206,187 )
Net sales
    369,084       482,277       1,673,389       2,200,613  
Asphalt mix and Concrete (b)
                               
Segment revenues
    178,416       268,511       833,129       1,201,191  
Intersegment sales
    (6 )     (80 )     (123 )     (560 )
Net sales
    178,410       268,431       833,006       1,200,631  
Cement (c)
                               
Segment revenues
    16,108       20,614       72,531       106,468  
Intersegment sales
    (7,835 )     (14,799 )     (35,219 )     (54,631 )
Net sales
    8,273       5,815       37,312       51,837  
Total
                               
Net sales
    555,767       756,523       2,543,707       3,453,081  
Delivery revenues
    34,377       42,676       146,783       198,357  
Total revenues
  $ 590,144     $ 799,199     $ 2,690,490     $ 3,651,438  
                                 
Gross Profit
                               
Aggregates
  $ 69,613     $ 127,619     $ 393,288     $ 657,566  
Asphalt mix and Concrete
    (1,042 )     18,425       54,516       74,463  
Cement
    (530 )     3,146       (1,842 )     17,683  
Total gross profit
  $ 68,041     $ 149,190     $ 445,962     $ 749,712  
                                 
Unit Shipments
                               
Aggregates
                               
Customer tons
    30,873       40,209       139,297       188,344  
Internal tons (d)
    2,671       3,302       11,566       15,908  
Aggregates - tons
    33,544       43,511       150,863       204,252  
                                 
Asphalt mix - tons
    1,779       2,026       7,415       9,538  
                                 
Ready-mixed concrete - cubic yards
    930       1,352       4,337       6,354  
                                 
Cement
                               
Customer tons
    58       117       262       595  
Internal tons (d)
    81       87       369       444  
Cement - tons
    139       204       631       1,039  
                                 
Average Unit Sales Price (including internal sales)
                         
Aggregates (freight-adjusted) (e)
  $ 10.39     $ 9.91     $ 10.30     $ 9.98  
Asphalt mix
  $ 49.93     $ 61.29     $ 52.66     $ 55.16  
Ready-mixed concrete
  $ 93.34     $ 97.76     $ 96.53     $ 97.75  
Cement
  $ 94.03     $ 95.11     $ 95.70     $ 96.75  

(a)
Includes crushed stone, sand and gravel, sand, other aggregates, as well as transportation and service revenues associated with the aggregates business.
   
(b)
Includes asphalt mix, 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 (e.g., 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):

     
2009
     
2008
 
             
             
Supplemental Disclosure of Cash Flow Information
           
Cash paid (refunded) during the period for:
           
Interest
  $ 181,352     $ 179,880  
Income taxes
    (25,097 )     91,544  
                 
Supplemental Schedule of Noncash Investing and Financing Activities
               
Liabilities assumed in business acquisitions
    -       2,024  
Accrued liabilities for purchases of property & equipment
    13,459       22,974  
Note received from sale of businesses
    1,450       -  
Carrying value of noncash assets and liabilities exchanged
    -       42,974  
Debt issued for purchases of property, plant & equipment
    1,987       389  
Proceeds receivable from exercise of stock options
    -       325  
Fair value of stock issued in business acquisitions
    -       25,023  
 
 
2.   Reconciliation of Non-GAAP Measures Free Cash Flow Reconciliations
 
 
     
2009
       
2008
 
                 
Net cash provided by operating activities
  $ 453,035     $ 435,185  
less: Purchases of property, plant and equipment
    (109,729 )     (353,196 )
Free Cash Flow
  $ 343,306     $ 81,989  
 
 
Free Cash Flow deducts Purchases of Property, Plant and Equipment from Net Cash Provided by Operating activities.  This financial metric is used by the investment community as an indicator of the company's ability to incur and service debt.  It is not defined by Generally Accepted Accounting Principles (GAAP); thus, it should not be considered as an alternative to net cash provided by operating activities or any other liquidity measure defined by GAAP.
 
This metric is presented for the convenience of investment professionals that use such metrics in their analysis and to provide the Company's shareholders an understanding of metrics management uses to assess performance and to monitor our cash and liquidity positions.  Vulcan's management internally uses Free Cash Flow and other such measures to assess the operating performance of its' various business units and the consolidated company. Vulcan’s management does not use this metric as a measure to allocate resources internally.
 

 
Table F
 
Reconciliation of Non-GAAP Measures
EBITDA and Cash Earnings Reconciliations
 
 
   
(Amounts in thousands)
 
 
   
Three Months Ended
   
Twelve Months Ended
 
   
December 31
   
December 31
 
     
2009
     
2008
   
2009
   
2008
 
                         
Reconciliation of Net Cash Provided by Operating Activities to EBITDA and Cash Earnings
             
 
                       
                         
Net cash provided by operating activities
  $ 98,214     $ 156,942     $ 453,035     $ 435,185  
Changes in operating assets and liabilities before initial
                               
    effects of business acquisitions and dispositions
    (38,429 )     (59,525 )     (90,275 )     85,171  
Goodwill Impairment
    -       (252,664 )     -       (252,664 )
Other net operating items (providing) using cash
    23,320       39,997       62,166       122,286  
(Earnings) loss on discontinued operations, net of tax
    767       661       (11,666 )     2,449  
Provision (benefit) for income taxes
    (28,248 )     (19,673 )     (37,869 )     71,691  
Interest expense, net
    42,951       46,081       172,980       169,687  
Less: Depreciation, depletion, accretion and amortization
    (96,454 )     (97,570 )     (394,612 )     (389,060 )
EBIT
    2,121       (185,751 )     153,759       244,745  
Plus: Goodwill Impairment
    -       252,664       -       252,664  
Plus: Depreciation, depletion, accretion and amortization
    96,454       97,570       394,612       389,060  
EBITDA
  $ 98,575     $ 164,483     $ 548,371     $ 886,469  
Less:  Interest expense, net
    (42,951 )     (46,081 )     (172,980 )     (169,687 )
           Current taxes
    10,893       1,578       (6,106 )     (92,346 )
Cash earnings
  $ 66,517     $ 119,980     $ 369,285     $ 624,436  
                                 
Reconciliation of Operating Earnings to EBITDA and Cash Earnings
                         
                                 
Operating earnings (loss)
  $ 1,391     $ (184,429 )   $ 148,452     $ 249,102  
Other income (expense), net
    730       (1,322 )     5,307       (4,357 )
EBIT
    2,121       (185,751 )     153,759       244,745  
Plus: Goodwill Impairment
    -       252,664       -       252,664  
Plus: Depreciation, depletion, accretion and amortization
    96,454       97,570       394,612       389,060  
EBITDA
  $ 98,575     $ 164,483     $ 548,371     $ 886,469  
Less:  Interest expense, net
    (42,951 )     (46,081 )     (172,980 )     (169,687 )
           Current taxes
    10,893       1,578       (6,106 )     (92,346 )
Cash earnings
  $ 66,517     $ 119,980     $ 369,285     $ 624,436  
 
 
                         
EBITDA and Earnings Per Share (EPS) Bridge
 
Three Months Ended
   
Twelve Months Ended
 
(Amounts in millions, except per share data)
 
December 31
   
December 31
 
   
EBITDA
   
EPS
   
EBITDA
   
EPS
 
Continuing Operations - 2008 Actual
  $ 164     $ (1.92 )   $ 886     $ 0.03  
Increase / (Decrease) due to:
                               
Aggregates: Volumes     (69 )     (0.57 )     (334 )     (2.12 )
Selling prices
    16       0.13       48       0.30  
Costs
    (6 )     (0.05 )     25       0.16  
Asphalt mix and Concrete
    (19 )     (0.16 )     (19 )     (0.12 )
Cement
    (4 )     (0.03 )     (20 )     (0.13 )
Selling, administrative and general expenses
    6       0.03       21       0.11  
Gain on sale of property, plant & equipment and businesses
    n/a       n/a       (67 )     (0.43 )
Depreciation, depletion, accretion and amortization
    n/a       0.01       n/a       (0.04 )
Interest expense, net
    n/a       0.02       n/a       (0.02 )
Tax rate differential and discrete items
    n/a       0.23       n/a       0.29  
Goodwill Impairment
    n/a       2.09       n/a       2.06  
Additional shares outstanding and other
    11       0.12       8       0.07  
Continuing Operations - 2009 Actual
  $ 99     $ (0.10 )   $ 548     $ 0.16