Vulcan Slashes Dividend, Digging for Cash Flow
Company develops new financial strategies to combat wounded construction market.
Vulcan Materials, the nation’s largest producer of construction aggregates, has taken a hit from the wounded construction market. But the company has recently announced several financial strategies to help weather the change.
The firm announced a 1-cent-a-share dividend, down from 25 cents a year ago; it has completed two transactions that bring it $57 million in cash and increase aggregates reserves; it received $24 million from an arbitrated case with the Illinois Department of Transportation, and it has signed a new revolving credit agreement—all steps that should “increase cash and liquidity and that should enhance our future operating performance,” Chairman and CEO Don James told shareholders.
Vulcan also named John McPherson its senior vice president of strategy and business development.