The board of directors at
Vulcan Materials Company
) recently announced the appointment of a new Chief Executive
Officer (CEO). Also, the largest producer of construction
aggregates in the U.S. announced a quarterly dividend on Friday -
the second increase this year.
On Monday, Vulcan Materials announced the appointment of J.
Thomas Hill, 55, as President and CEO of the company. Hill, who
served as Executive Vice President and Chief Operating Officer of
Vulcan Materials, replaces Donald James, 65.
Last week, the company announced that it will pay a quarterly
dividend of 6 cents per share in Sep 2014, versus 5 cents paid in
May. The quarterly dividend is equivalent to an annual dividend of
24 cents per share, yielding 0.4% annually. The increased quarterly
dividend will be payable on Sep 10, 2014, to shareholders of record
as on Aug 27.
Earlier in February, Vulcan Materials increased the quarterly
dividend by 400% from 1 cent to 5 cents.
We believe Vulcan Materials' improved liquidity position
following the sale of non-core cement and concrete businesses in
Florida, reduction in debt and improved earnings from the Profit
Enhancement Plan are responsible for the back-to-back dividend
Under the Profit Enhancement Plan, Vulcan Materials divested
non-core assets, improved earnings and cash flows, paid off debts
and thereby strengthened its overall credit profile. With the sale
of non-core cement and concrete businesses in Florida to Cementos
Argo for $720 million in March, the company achieved the goals laid
down under the plan. These initiatives implemented over the past
two years have increased adjusted EBITDA by $116 million, generated
more than $1 billion from the sale of non-strategic assets and
future sales production agreements and reduced total debt of
approximately $800 million.
Other Stocks to Consider
Vulcan Materials carries a Zacks Rank #3 (Hold). Other stocks in
the building construction/materials sector worth considering
Martin Marietta Materials Inc.
D.R. Horton, Inc.
Toll Brothers, Inc.
). All three stocks carry a Zacks Rank #2 (Buy).
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VULCAN MATLS CO (VMC): Free Stock Analysis
TOLL BROTHERS (TOL): Free Stock Analysis Report
D R HORTON INC (DHI): Free Stock Analysis
MARTIN MRT-MATL (MLM): Free Stock Analysis
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