UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
________________________________________
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported):  November 1, 2010
 
VULCAN MATERIALS COMPANY
(Exact name of registrant as specified in its charter)

 	
New Jersey
___________________________
(State or other jurisdiction
of incorporation)	001-33841
_____________________________
(Commission File Number)
 
 	20-8579133
___________________________
(IRS Employer Identification No.)

1200 Urban Center Drive
Birmingham, Alabama 35242
(Address of principal executive offices) (zip code)

(205) 298-3000
Registrant's telephone number, including area code:

Not Applicable
(Former name or former address if changed since last report)

 	
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions:
 	
o	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	
o	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	
o	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	
o	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	

 

 
 
Item 2.02	Results of Operations and Financial Condition .	
 	 	
 	The Registrant's earnings release dated November 1, 2010, announcing its third quarter financial results is attached hereto as Exhibit 99.1.	

Item 9.01	Financial Statements and Exhibits.	

(c)	Exhibits : 	Description :	
 	 	 	
 	99.1 	Earnings Release dated November 1, 2010 	

SIGNATURES

 Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant had duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
 	VULCAN MATERIALS COMPANY
(Registrant)	 	

Dated:    November  1, 2010      	By:	/s/ Robert A. Wason IV	 	
 	 	Robert A. Wason IV	 	

 

 

Vulcan Announces Third Quarter Results
BIRMINGHAM, Ala., Nov. 1, 2010 /PRNewswire-FirstCall/ -- Vulcan Materials Company (NYSE: VMC), the nation’s largest producer of construction aggregates, announced results today for the third quarter ended September 30, 2010.  
(Photo: http://photos.prnewswire.com/prnh/20090710/CL44887LOGO )
(Photo: http://www.newscom.com/cgi-bin/prnh/20090710/CL44887LOGO )
Third Quarter Summary and Comparisons with the Prior Year
·	Net earnings were $0.10 per diluted share and earnings from continuing operations were $11 million, or $0.08 per diluted share.
·	EBITDA was $150 million and cash earnings were $116 million.
·	Aggregates shipments declined 2.6 percent, decreasing pretax earnings $7 million.
·	The average price for aggregates was in line with the prior year, with wide variations across markets.
·	Excluding energy costs, unit cost of sales for aggregates decreased 2 percent.
·	Unit cost for diesel fuel increased 17 percent, reducing pretax earnings $4 million.
·	Unit cost for liquid asphalt increased 14 percent, reducing pretax earnings $6 million.
·	Selling, administrative and general expenses were reduced by $2 million.

Commenting for the Company, Don James, Vulcan’s Chairman and Chief Executive Officer, stated, “Despite the modest decline in third quarter aggregates shipments, we are encouraged by underlying shipping trends.  Trailing twelve month aggregates shipments have been increasing since February in spite of significantly lower volumes in the third quarter in Illinois due to a labor strike affecting our customers.  In asphalt, trailing twelve month shipments have been relatively stable for the last 4 months.
“We continue to focus on controlling costs and managing production levels to meet current demand.  During the last two years, we have reduced inventory levels of aggregates across our footprint.  This action, while negatively affecting reported earnings, has improved cash flows and better positions us operationally for a recovery in demand.  In the third quarter, aggregates production equaled sales volumes and, as a result, our unit cost of sales was in line with the prior year, notwithstanding the increase in energy costs. Going forward, we believe the cumulative effect of aggressively managing our inventory levels during the past two years has better positioned us to benefit from higher production levels.
“Contract awards for highway construction in Vulcan-served states continue to out-pace other states.  During the twelve months ending September 2010, total contract awards for highway construction in Vulcan-served states, including awards for federal, state and local projects, increased 7 percent from the prior year compared to 3 percent for other states.  Through September 2010, the Federal Highway Administration reported that only 42 percent of the total stimulus funds obligated for highways in Vulcan’s 10 largest revenue states had been spent – which bodes well for increased construction activity from federal stimulus spending for the remainder of 2010 and 2011.”
Third Quarter Operating Results Commentary
Third quarter aggregates earnings were $125 million versus $133 million in the prior year.  Aggregates shipments declined 2.6 percent from the prior year’s third quarter, accounting for most of the year-over-year decline in segment earnings.  An industry-wide strike during most of July by construction workers in Illinois affected our customers and accounted for the year-over-year decline in shipments.  Otherwise, many Vulcan-served markets realized solid increases in shipments versus the prior year’s third quarter due primarily to stronger demand from public infrastructure projects and some improvement in single-family housing starts while some other markets realized declines in shipments.    
The average unit price for aggregates in the third quarter was in line with the prior year but pricing continues to reflect wide variations across Vulcan-served markets.  Aggregates unit costs of sales were in line with the prior year’s third quarter despite higher energy costs.  
Segment earnings in asphalt were $8 million lower than the prior year due primarily to a 14 percent increase in the unit cost for liquid asphalt and lower selling prices.  Selling prices for asphalt mix generally lag increasing liquid asphalt costs and were further held in check due to competitive pressures.  Asphalt volumes decreased 3 percent from the prior year’s third quarter.  Sequentially, unit material margins in the third quarter increased 10 percent from the second quarter due to lower unit costs.  
Concrete segment earnings declined $9 million from the prior year’s third quarter due principally to lower selling prices.  Cement segment earnings in the third quarter were a loss of $2 million due primarily to lower selling prices.
Selling, administrative and general expense in the third quarter was $78 million versus $80 million in the prior year’s third quarter.  The year-over-year decline resulted mostly from lower employee-related expenses.
All results are unaudited.
Outlook Highlights and Commentary
Commenting on the Company’s outlook for the remainder of the year, Mr. James stated, “While the current construction environment remains challenging, our optimism that the worst is behind us continues to grow.  First, from the perspective of the overall economy, most GDP forecasts for the U.S. indicate further growth.  In past economic cycles, demand for aggregates has improved as GDP has grown during the initial years of economic recovery.  Additionally, state and local tax revenues have historically rebounded after GDP recovers.  Since the second quarter of 2009, all Vulcan-served states have shown positive growth in gross state product – an indication economic recovery is underway.  
“Public construction activity, particularly highways, continues to provide solid support for aggregates demand.  Trailing twelve month contract awards for highways continue to show improvement versus the prior year, and approximately half of the $26 billion of total stimulus funds obligated for highways in the U.S. remains to be spent, according to the Federal Highway Administration.  In August, the Congressional Budget Office forecasted total outlays for federal highway construction for the fiscal year ending September 2011 to increase 7 percent from the fiscal year just ended.  This projected increase includes outlays from the regular highway funding program as well as stimulus funds.  
“Private construction activity has remained challenging, particularly private nonresidential construction.  Single-family housing starts appear to have turned the corner, bottoming late in 2009.  Through September, single-family housing starts for the trailing twelve months have increased 10 percent versus the same period last year, due in part to the home-buyers tax credit that expired in April.  While private nonresidential construction remains weak, the rate of decline in contract awards has slowed.  A number of external forecasts now are calling for private nonresidential construction activity to bottom in 2011.  The start of a recovery in this end market will be influenced by employment growth, business investment and lending activity.
“Overall, pricing for aggregates remains solid.  A number of our markets are realizing year-over-year price growth, although pricing in certain other markets has declined due to competitive pressures.  As a result, we expect pricing in the fourth quarter to approximate the prior year’s level.  Assuming typical weather patterns, we expect fourth quarter aggregates shipments to be up slightly from last year’s level.  
“In our asphalt business, material margins on each ton of asphalt mix sold have trended higher since the first quarter of this year due to a relatively more stable cost environment for liquid asphalt.  We expect this trend to continue in the fourth quarter.  In concrete and cement, we expect higher volumes to offset lower prices.
“Debt reduction and achieving target debt ratios remain a priority.  We expect to reduce total debt by $120 million by the end of 2010.  For the full year, we now expect capital spending to be less than $100 million, down from the previous guidance of $125 million.
“Our available production capacity positions Vulcan to participate efficiently and effectively in the increase in federal highway spending projected by the Congressional Budget Office.  By the second half of 2011, we expect that continued growth in the overall economy and an improving job market will begin driving an increase in private construction activity, accelerating the earnings leverage of the Company.”
Conference Call
Vulcan will host a conference call at 10:00 a.m. CDT on November 2, 2010.  Investors and other interested parties in the U.S. may access the teleconference live by calling 800.884.5695 approximately 10 minutes before the scheduled start.  International participants can dial 617.786.2960.  The access code is 36126335.  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 November 9, 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; 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 for our 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 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 economic recession 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		Nine Months Ended		
Consolidated Statements of Earnings	September 30		September 30		
(Condensed and unaudited)	2010		2009		2010		2009		
											
Net sales	$  699,792		$  738,664		$  1,857,085		$  1,987,939		
Delivery revenues	43,412		39,528		115,534		112,407		
Total revenues	743,204		778,192		1,972,619		2,100,346		
											
Cost of goods sold	573,045		584,184		1,607,109		1,610,018		
Delivery costs	43,412		39,528		115,534		112,407		
Cost of revenues	616,457		623,712		1,722,643		1,722,425		
											
Gross profit	126,747		154,480		249,976		377,921		
Selling, administrative and general expenses	77,560		79,558		247,431		238,629		
Gain on sale of property, plant & equipment									
	and businesses, net	476		7,496		50,210		10,653		
Charge for legal settlement	-		-		40,000		-		
Other operating income (expense), net	769		286		2,117		(2,885)		
Operating earnings	50,432		82,704		14,872		147,060		
											
Other income, net	1,637		2,756		1,780		4,578		
Interest expense, net	47,526		43,519		134,541		130,029		
Earnings (loss) from continuing operations									
	before income taxes	4,543		41,941		(117,889)		21,609		
Benefit from income taxes	(6,048)		(5,983)		(61,491)		(9,621)		
Earnings (loss) from continuing operations	10,591		47,924		(56,398)		31,230		
Earnings on discontinued operations, net of tax	2,655		6,308		6,905		12,433		
Net earnings (loss)	$    13,246		$    54,232		$     (49,493)		$       43,663		
Basic earnings (loss) per share:									
	Continuing operations	$       0.08		$       0.38		$        (0.44)		$          0.27		
	Discontinued operations	0.02		0.05		0.05		0.10		
	Net earnings (loss) per share	$       0.10		$       0.43		$        (0.39)		$          0.37		
											
Diluted earnings (loss) per share:									
	Continuing operations	$       0.08		$       0.38		$        (0.44)		$          0.27		
	Discontinued operations	0.02		0.05		0.05		0.10		
	Net earnings (loss) per share	$       0.10		$       0.43		$        (0.39)		$          0.37		
											
Weighted-average common shares									
    outstanding:									
		Basic	128,602		125,361		127,840		116,533		
		Assuming dilution	128,910		125,859		127,840		117,047		
Cash dividends declared per share									
	of common stock	$       0.25		$       0.25		$          0.75		$          1.23		
Depreciation, depletion, accretion and									
	amortization	$   97,697		$   99,243		$    289,174		$    298,158		
Effective tax rate from continuing operations	-133.1%		-14.3%		52.2%		-44.5%		

 Table B		
Vulcan Materials Company		
and Subsidiary Companies		
					
			(Amounts in thousands, except per share data)		
							
Consolidated Balance Sheets	September 30		December 31		September 30		
(Condensed and unaudited)	2010		2009		2009		
									
Assets							
Cash and cash equivalents	$           82,496		$         22,265		$           46,547		
Restricted cash	531		-		-		
Medium-term investments	3,910		4,111		6,803		
Accounts and notes receivable:							
	Accounts and notes receivable, gross	414,316		276,746		408,407		
	Less: Allowance for doubtful accounts	(9,382)		(8,722)		(9,394)		
		Accounts and notes receivable, net	404,934		268,024		399,013		
Inventories:							
	Finished products	251,457		261,752		265,422		
	Raw materials	22,924		21,807		24,565		
	Products in process	5,905		3,907		5,085		
	Operating supplies and other	35,958		37,567		36,623		
		Inventories	316,244		325,033		331,695		
Deferred income taxes	66,718		57,967		67,967		
Prepaid expenses	42,729		50,817		33,466		
Assets held for sale	14,582		15,072		-		
		Total current assets	932,144		743,289		885,491		
Investments and long-term receivables	33,808		33,283		31,424		
Property, plant & equipment:							
	Property, plant & equipment, cost	6,656,252		6,653,261		6,678,317		
	Less: Reserve for depr., depl. & amort.	(2,987,287)		(2,778,590)		(2,713,057)		
		Property, plant & equipment, net	3,668,965		3,874,671		3,965,260		
Goodwill	3,093,979		3,093,979		3,093,979		
Other intangible assets, net	693,779		682,643		681,087		
Other assets	106,922		105,085		105,927		
		Total assets	$      8,529,597		$    8,532,950		$      8,763,168		

Liabilities and Shareholders' Equity							
Current maturities of long-term debt	$         325,249		$       385,381		$           60,421		
Short-term borrowings	-		236,512		286,357		
Trade payables and accruals	138,462		121,324		141,884		
Other current liabilities	207,085		113,109		187,171		
Liabilities of assets held for sale	460		369		-		
		Total current liabilities	671,256		856,695		675,833		
Long-term debt	2,432,521		2,116,120		2,506,170		
Deferred income taxes	849,925		887,268		896,598		
Other noncurrent liabilities	537,041		620,845		599,039		
		Total liabilities  	4,490,743		4,480,928		4,677,640		
Shareholders' equity:							
	Common stock, $1 par value	128,391		125,912		125,401		
	Capital in excess of par value	2,487,538		2,368,228		2,342,765		
	Retained earnings	1,606,754		1,752,240		1,797,036		
	Accumulated other comprehensive loss	(183,829)		(194,358)		(179,674)		
		Shareholders' equity  	4,038,854		4,052,022		4,085,528		
		Total liabilities and shareholders' equity	$      8,529,597		$    8,532,950		$      8,763,168		

 Table C		
Vulcan Materials Company		
and Subsidiary Companies		
						
				(Amounts in thousands)		
				Nine Months Ended		
Consolidated Statements of Cash Flows	September 30		
(Condensed and unaudited)	2010		2009		

Operating Activities					
Net earnings (loss)	$ (49,493)		$  43,663		
Adjustments to reconcile net earnings (loss) to					
	net cash provided by operating activities:					
		Depreciation, depletion, accretion and amortization	289,174		298,158		
		Net gain on sale of property, plant & equipment and businesses	(59,004)		(11,465)		
		Contributions to pension plans	(23,400)		(26,793)		
		Share-based compensation	15,198		21,870		
		Deferred tax provision	(51,060)		(26,477)		
		Changes in assets and liabilities before initial					
			effects of business acquisitions and dispositions	(6,647)		51,845		
Other,  net  	13,059		4,021		
			Net cash provided by operating activities	127,827		354,822		
								
Investing Activities					
Purchases of property, plant & equipment	(62,104)		(94,165)		
Proceeds from sale of property, plant & equipment	4,008		6,399		
Proceeds from sale of businesses, net of transaction costs	50,954		16,075		
Payment for businesses acquired, net of acquired cash	(35,404)		(36,980)		
Redemption of medium-term investments	22		30,590		
Other, net		341		676		
			Net cash used for investing activities	(42,183)		(77,405)		
								
Financing Activities					
Net short-term payments	(236,512)		(798,118)		
Payment of current maturities and long-term debt	(193,994)		(296,555)		
Proceeds from issuance of long-term debt, net of discounts	450,000		397,660		
Debt issuance costs	(3,058)		(3,033)		
Proceeds from issuance of common stock	41,734		587,129		
Dividends paid	(95,696)		(140,048)		
Proceeds from exercise of stock options	12,597		10,958		
Other, net		(484)		943		
			Net cash used for financing activities	(25,413)		(241,064)		
								
Net increase in cash and cash equivalents	60,231		36,353		
Cash and cash equivalents at beginning of year	22,265		10,194		
Cash and cash equivalents at end of period	$  82,496		$  46,547		

 Table D		
Segment Financial Data and Unit Shipments									
			(Amounts in thousands, except per unit data)		
			Three Months Ended		Nine Months Ended		
			September 30		September 30		
			2010		2009		2010		2009		
Total Revenues			
	Aggregates segment (a)	$ 514,332		$ 532,936		$ 1,369,492		$ 1,432,353		
	Intersegment sales	(44,792)		(48,070)		(119,239)		(128,048)		
		Net sales	469,540		484,866		1,250,253		1,304,305		
	Concrete segment (b)	105,049		119,284		293,028		348,730		
	Intersegment sales	-		(32)		(7)		(118)		
		Net sales	105,049		119,252		293,021		348,612		
	Asphalt mix segment	115,788		123,922		282,309		305,983		
	Intersegment sales	-		-		-		-		
		Net sales	115,788		123,922		282,309		305,983		
	Cement segment (c)	20,360		19,829		61,208		56,423		
	Intersegment sales	(10,945)		(9,205)		(29,706)		(27,384)		
		Net sales	9,415		10,624		31,502		29,039		
	Total			
		Net sales	699,792		738,664		1,857,085		1,987,939		
		Delivery revenues	43,412		39,528		115,534		112,407		
		Total revenues	$ 743,204		$ 778,192		$ 1,972,619		$ 2,100,346		
											
Gross Profit					
	Aggregates	$ 125,129		$ 133,229		$    262,514		$    323,675		
	Concrete	(10,070)		(604)		(31,736)		(3,671)		
	Asphalt mix	13,440		21,334		21,756		59,229		
	Cement	(1,752)		521		(2,558)		(1,312)		
	Total gross profit	$ 126,747		$ 154,480		$    249,976		$    377,921		
											
Depreciation, depletion, accretion and amortization					
	Aggregates	$   74,512		$   78,060		$    222,561		$    235,146		
	Concrete	13,622		12,786		40,064		38,994		
	Asphalt mix	2,212		2,194		6,689		6,374		
	Cement	5,787		4,924		15,360		14,332		
	Corporate and other unallocated	1,564		1,279		4,500		3,312		
	Total DD&A	$   97,697		$   99,243		$    289,174		$    298,158		
											
Unit Shipments									
	Aggregates customer tons	40,079		41,090		105,144		108,424		
	Internal tons (d)	3,314		3,454		8,748		8,895		
	Aggregates - tons	43,393		44,544		113,892		117,319		
											
	Ready-mixed concrete - cubic yards	1,137		1,191		3,165		3,407		
	Asphalt mix - tons	2,258		2,336		5,462		5,636		
											
	Cement customer tons	70		81		245		204		
	Internal tons (d)	148		97		390		287		
	Cement - tons	218		178		635		491		
											
Average Unit Sales Price (including internal sales)									
											
	Aggregates (freight-adjusted) (e)	$     10.18		$     10.20		$        10.18		$        10.27		
	Ready-mixed concrete	$     87.62		$     96.15		$        86.95		$        97.40		
	Asphalt mix	$     50.62		$     52.38		$        50.54		$        53.50		
	Cement	$     79.56		$     93.31		$        80.01		$        96.17		
											
(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 (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 nine months ended September 30 is summarized below:		
		(Amounts in thousands)		
		2010		2009		

Supplemental Disclosure of Cash Flow Information					
Cash paid (refunded) during the period for:					
	Interest	$ 101,917		$ 109,586		
	Income taxes	3,897		(9,706)		
						
Supplemental Schedule of Noncash Investing and Financing Activities					
Liabilities assumed in business acquisitions	150		-		
Accrued liabilities for purchases of property, plant & equipment	4,674		13,436		
Note received from sale of businesses	-		1,450		
Debt issued for purchases of property, plant & equipment	-		1,984		
Stock issued for pension contribution	53,864		-		
Proceeds receivable from issuance of common stock	-		1,712		

2.   Reconciliation of Non-GAAP Measures					
						
Net cash provided by operating activities	$ 127,827		$ 354,822		
Purchases of property, plant & equipment	(62,104)		(94,165)		
Free cash flow	$   65,723		$ 260,657		
						
Free cash flow deducts purchases of property, plant & 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 our shareholders with an understanding
of the metrics we use to assess performance and to monitor our cash and liquidity
positions. We internally use free cash flow and other such measures to assess the
operating performance of our various business units and the consolidated company.
We do 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		Nine Months Ended		
					September 30		September 30		
					2010		2009		2010		2009		
													
Reconciliation of Net Cash Provided by Operating Activities to EBITDA and Cash Earnings									
													
Net cash provided by operating activities			$     109,171		$ 185,420		$    127,827		$ 354,822		
Changes in operating assets and liabilities before initial											
   effects of business acquisitions and dispositions			9,231		(87,695)		6,647		(51,845)		
Other net operating items (providing) using cash			(7,459)		55,750		105,207		38,844		
Earnings on discontinued operations, net of tax			(2,655)		(6,308)		(6,905)		(12,433)		
Benefit from income taxes			(6,048)		(5,983)		(61,491)		(9,621)		
Interest expense, net			47,526		43,519		134,541		130,029		
Less: Depreciation, depletion, accretion and amortization			(97,697)		(99,243)		(289,174)		(298,158)		
EBIT					52,069		85,460		16,652		151,638		
Plus: Depreciation, depletion, accretion and amortization			97,697		99,243		289,174		298,158		
EBITDA					$     149,766		$ 184,703		$    305,826		$ 449,796		
Less:  Interest expense, net			(47,526)		(43,519)		(134,541)		(130,029)		
          Current taxes			13,303		(26,526)		10,393		(16,999)		
Cash earnings					$     115,543		$ 114,658		$    181,678		$ 302,768		
													
Reconciliation of Net Earnings (Loss) to EBITDA and Cash Earnings										
													
Net earnings (loss)				$       13,246		$   54,232		$     (49,493)		$   43,663		
Benefit from income taxes			(6,048)		(5,983)		(61,491)		(9,621)		
Interest expense, net			47,526		43,519		134,541		130,029		
Earnings on discontinued operations, net of tax			(2,655)		(6,308)		(6,905)		(12,433)		
EBIT					52,069		85,460		16,652		151,638		
Plus: Depreciation, depletion, accretion and amortization			97,697		99,243		289,174		298,158		
EBITDA					$     149,766		$ 184,703		$    305,826		$ 449,796		
Less:  Interest expense, net			(47,526)		(43,519)		(134,541)		(130,029)		
          Current taxes			13,303		(26,526)		10,393		(16,999)		
Cash earnings					$     115,543		$ 114,658		$    181,678		$ 302,768		

													

										
EBITDA Bridge				Three Months Ended			Nine Months Ended			
(Amounts in millions)			September 30			September 30			
					EBITDA				EBITDA				
Continuing Operations - 2009 Actual			$                             185				$                          450				
Increase / (Decrease) due to:											
Illinois DOT settlement and related expenses			-				(41)				
Aggregates:	Volumes				(7)				(21)				
	Selling prices				(1)				(10)				
	Costs and other items				(4)				(43)				
Concrete					(9)				(27)				
Asphalt mix					(8)				(37)				
Gain on sale of property, plant & equipment and businesses (a)		(7)				30				
Depreciation, depletion, accretion and amortization			n/a				n/a				
All other (additional shares, tax rate, misc. items)			1				5				
Continuing Operations - 2010 Actual			$                             150				$                          306				

													

(a)  Excludes the donation of land
		
EBITDA is an acronym for Earnings Before Interest, Taxes, Depreciation and Amortization.  Cash earnings adjusts EBITDA for net interest and current taxes.  These financial metrics are often used by the investment community as indicators of a company’s ability to incur and service debt.  They are not defined by Generally Accepted Accounting Principles (GAAP); thus, they should not be considered as an alternative to net cash provided by operating activities, operating earnings, or any other liquidity or performance measure defined by GAAP.		
		
These metrics are presented for the convenience of investment professionals that use such metrics in their analysis and to provide our shareholders with an understanding of the metrics we use to assess performance and to monitor our cash and liquidity positions.  We internally use 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 internally.		

CONTACT:  Investors:  Mark Warren, +1-205-298-3220,  or Media: David Donaldson, +1-205-298-3220