SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1995
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 1-4033
VULCAN MATERIALS COMPANY
(Exact name of registrant as specified in its charter)
New Jersey 63-0366371
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
One Metroplex Drive, Birmingham, Alabama 35209
(Address of principal executive offices) (Zip Code)
Registrant's telephone number including area code (205) 877-3000
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that
the registrant was required to file such reports), and (2) has been subject
to such filing requirements for the past 90 days. Yes X No
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date:
Shares outstanding
Class at June 30, 1995
Common Stock, $1 Par Value 35,879,487
VULCAN MATERIALS COMPANY
FORM 10-Q
QUARTER ENDED JUNE 30, 1995
Contents
Page No.
PART I FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance Sheets 1
Condensed Consolidated Statements of Earnings 2
Condensed Consolidated Statements of Cash Flows 3
Notes to Condensed Consolidated Financial Statements 4
Exhibit 11 - Computation of Earnings Per Share 5
Exhibit 12 - Computation of Ratio of Earnings
to Fixed Charges 6
Item 2. Management's Discussion and Analysis of Results
of Operations and Financial Condition 7
PART II OTHER INFORMATION
Item 1. Legal Proceedings 15
Item 6. Exhibits and Reports on Form 8-K 15
SIGNATURES 16
<TABLE>
<CAPTION>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
VULCAN MATERIALS COMPANY AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED BALANCE SHEETS*
(Amounts in thousands)
June 30, December 31, June 30,
Assets 1995 1994 1994
<S> <C> <C> <C>
Current assets
Cash and cash equivalents..................................$ 2 $ 7,717 $ 19,932
Accounts and notes receivable, less allowance for
doubtful accounts: June 30, 1995, $8,381; Dec. 31,
1994, $8,244; June 30, 1994, $7,594...................... 219,711 182,128 198,409
Inventories:
Finished products........................................ 91,153 77,721 77,786
Raw materials............................................ 11,283 9,248 5,487
Products in process...................................... 1,129 623 1,318
Operating supplies and other............................. 26,821 24,889 25,546
Total inventories................................... 130,386 112,481 110,137
Deferred income taxes...................................... 26,968 29,074 26,142
Prepaid expenses........................................... 16,691 5,398 19,213
Total current assets................................ 393,758 336,798 373,833
Investments and long-term receivables........................ 61,397 58,138 56,641
Property, plant and equipment, at cost less accumulated
depreciation, depletion and amortization: June 30,
1995, $1,142,025; Dec. 31, 1994, $1,107,132; June 30,
1994, $1,080,037........................................... 710,862 701,757 660,063
Deferred charges and other assets............................ 89,667 84,451 64,482
Total...............................................$ 1,255,684 $1,181,144 $ 1,155,019
Liabilities and Shareholders' Equity
Current liabilities
Current maturities of long-term obligations................$ 5,720 $ 4,687 $ 4,749
Notes payable.............................................. 71,048 42,779 45,233
Trade payables and accruals................................ 99,752 102,394 100,186
Other current liabilities.................................. 78,798 61,488 59,209
Total current liabilities........................... 255,318 211,348 209,377
Long-term obligations........................................ 91,927 97,380 97,698
Deferred income taxes........................................ 82,570 82,507 76,454
Other noncurrent liabilities................................. 61,540 58,280 55,647
Other commitments and contingent liabilities
Shareholders' equity......................................... 764,329 731,629 715,843
Total...............................................$ 1,255,684 $1,181,144 $ 1,155,019
<FN>
*Balance sheets as of June 30 are unaudited.
The accompanying Notes to Condensed Consolidated Financial
Statements are an integral part of these statements.
</TABLE>
<TABLE>
<CAPTION>
VULCAN MATERIALS COMPANY AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Amounts and shares in thousands, except per share data)
Three Months Ended Six Months Ended
June 30* June 30*
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Net sales...........................................$ 382,819 $ 326,704 $ 677,207 $ 543,597
Cost of goods sold................................... 269,632 249,355 505,234 445,238
Gross profit on sales................................ 113,187 77,349 171,973 98,359
Selling, administrative and general expenses......... 38,788 28,631 76,182 56,472
Other operating costs................................ 998 1,199 2,241 2,537
Other income, net.................................... 3,485 4,170 10,338 6,865
Earnings before interest
expense and income taxes........................... 76,886 51,689 103,888 46,215
Interest expense..................................... 3,075 2,205 5,596 4,415
Earnings before income taxes......................... 73,811 49,484 98,292 41,800
Provision for income taxes........................... 26,080 15,750 34,599 13,292
Net earnings .......................................$ 47,731 $ 33,734 $ 63,693 $ 28,508
Primary and fully diluted earnings per
share of common stock.............................. $1.32 $0.92 $1.76 $0.78
Average common and common equivalent
shares outstanding**............................... 36,188 36,771 36,143 36,743
Cash dividends per share of common stock............. $0.365 $0.33 $ 0.73 $ 0.66
Depreciation, depletion and amortization
deducted above..................................... $27,270 $25,802 $54,118 $52,636
Effective tax rate................................... 35.3% 31.8% 35.2% 31.8%
<FN>
* Unaudited
**Primary and fully diluted earnings per share of common stock are computed
by dividing net earnings by the weighted average number of common shares
and common share equivalents outstanding during the period. Common share
equivalents represent the number of shares contingently issuable under
long-range performance share plans and the stock plan for non-employee
directors. Refer to Exhibit 11 for computation.
The accompanying Notes to Condensed Consolidated Financial
Statements are an integral part of these statements.
</TABLE>
<TABLE>
<CAPTION>
VULCAN MATERIALS COMPANY AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
Six Months Ended
June 30*
1995 1994
<S> <C> <C>
Operations
Net earnings ...................................................$ 63,693 $ 28,508
Adjustments to reconcile net earnings to net cash
provided by continuing operations:
Depreciation, depletion and amortization.................... 54,118 52,636
Increase in assets before effects of
business acquisitions..................................... (61,030) (62,589)
Increase in liabilities before effects of
business acquisitions..................................... 16,048 17,890
Other, net.................................................. (4,173) 1,744
Net cash provided by continuing operations............... 68,656 38,189
Net cash used for discontinued operations....................... (605) (415)
Net cash provided by operations.......................... 68,051 37,774
Investing Activities
Purchases of property, plant and equipment...................... (63,048) (51,109)
Payment for business acquisitions (net of acquired cash)........ (12,177) -
Proceeds from sale of property, plant and equipment............. 8,107 5,131
Investment in nonconsolidated companies......................... (1,016) (1,159)
Withdrawal of earnings from nonconsolidated companies........... 250 -
Net cash used for investing activities................... (67,884) (47,137)
Financing Activities
Net borrowings - commercial paper and bank lines of credit...... 28,270 45,233
Payment of short-term debt...................................... (4,399) (1,459)
Payment of long-term debt....................................... (22) (4,374)
Purchases of common stock....................................... (5,554) -
Dividends paid.................................................. (26,177) (24,101)
Net cash provided by (used for) financing activities..... (7,882) 15,299
Net increase (decrease) in cash and cash equivalents............ (7,715) 5,936
Cash and cash equivalents at beginning of year.................. 7,717 13,996
Cash and cash equivalents at end of period......................$ 2 $ 19,932
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest (net of amount capitalized)......................$ 5,398 $ 4,283
Income taxes.............................................. 17,717 3,597
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING
AND FINANCING ACTIVITIES:
Liabilities assumed in business acquisition.................$ 1,382 $ 5,761
Fair value of stock issued in business acquisition.......... - 7,476
<FN>
*Unaudited
The accompanying Notes to Condensed Consolidated Financial
Statements are an integral part of these statements.
</TABLE>
VULCAN MATERIALS COMPANY AND SUBSIDIARY COMPANIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of Presentation
The accompanying condensed financial statements have been prepared in
compliance with Form 10-Q instructions and thus do not include all of
the information and footnotes required by generally accepted accounting
principles for complete financial statements. In the opinion of
management, the statements reflect all adjustments, including those of a
normal recurring nature, necessary to present fairly the results of the
reported interim periods. The statements should be read in conjunction
with the summary of accounting policies and notes to financial statements
included in the Company's latest annual report on Form 10-K. The
reporting of segment data required by Statement of Financial Accounting
Standards No. 14, Financial Reporting for Segments of a Business
Enterprise, is confined to complete financial statements as provided
in the Company's Form 10-K and annual report to shareholders.
2. Effective Tax Rate
In accordance with generally accepted accounting principles, it is the
Company's practice at the end of each interim reporting period to make a
best estimate of the effective tax rate expected to be applicable for the
full fiscal year. The rate so determined is used in providing for income
taxes on a current year-to-date basis.
EXHIBIT 11
COMPUTATION OF EARNINGS PER SHARE
(Amounts and shares in thousands, except per share data)
Three Months Ended Six Months Ended
June 30 June 30
1995 1994 1995 1994
Primary and fully diluted earnings:
Average common shares outstanding.... 35,870 36,521 35,870 36,505
Common share equivalents:
Performance share plan................318 250 273 238
Total shares.................36,188 36,771 36,143 36,743
Net earnings........................$47,731 $ 33,734 $ 63,693 $28,508
Primary and fully diluted earnings
per share of common stock:........$ 1.32 $ 0.92 $ 1.76 $ 0.78
<TABLE>
<CAPTION>
EXHIBIT 12
VULCAN MATERIALS COMPANY AND SUBSIDIARY COMPANIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Amounts in thousands)
For the Years Ended December 31
1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C>
Fixed charges:
Interest expense before
capitalization credits $ 10,699 $ 10,187 $ 10,441 $ 11,336 $ 9,349
Amortization of financing costs 114 115 116 75 44
One-third of rental expense 10,393 7,375 8,711 4,815 5,678
Total fixed charges $ 21,206 $ 17,677 $ 19,268 $ 16,226 $ 15,071
Net earnings from continuing
operations $ 97,976 $ 88,229 $ 90,980 $ 52,580 $120,278
Provision for income taxes 47,930 36,993 39,746 20,867 58,951
Fixed charges 21,206 17,677 19,268 16,226 15,071
Capitalized interest credits (878) (1,016) (673) (131) (1,591)
Amortization of capitalized interest 997 882 792 840 705
Earnings from continuing operations
before income taxes as adjusted $167,231 $142,765 $150,113 $ 90,382 $193,414
Ratio of earnings to fixed charges 7.9 8.1 7.8 5.6 12.8
For the Six Months
Ended June 30, 1995
Fixed charges:
Interest expense before
capitalization credits $ 5,832
Amortization of financing costs 55
One-third of rental expense 4,283
Total fixed charges $ 10,170
Net earnings $ 63,693
Provision for income taxes 34,599
Fixed charges 10,170
Capitalized interest credits (236)
Amortization of capitalized interest 530
Earnings before income taxes
as adjusted $108,756
Ratio of earnings to fixed charges 10.7
<FN>
NOTE: Since 1987, the Company has guaranteed a portion of certain debts of
two of the entities through which it participates in the Crescent Market
Project. In addition, since February 1994, the Company has guaranteed a
portion of certain debt of a third entity. The fixed charges associated
with such guaranties (under which the Company has not been required to
make any payments) for the six months ended June 30, 1995, were
$1,404,000 and for the one-year periods ended December 31, 1994, 1993,
1992, 1991, and 1990 were $2,666,000, $2,731,000, $3,583,000, $3,525,000
and $2,535,000, respectively. Because the Company's ownership interest
in the Crescent Market Project are accounted for by the equity method,
these amounts have not been included in the computation of the ratios of
earnings to fixed charges presented above.
</TABLE>
Item 2. Management's Discussion and Analysis of Results
of Operations and Financial Condition
GENERAL COMMENTS
Seasonality of the Company's Business
Results of any individual quarter are not necessarily indicative of results
to be expected for the year due principally to the effect that weather can
have on the sales and production volume of the Construction Materials
segment. Normally, the highest sales and earnings of the Construction
Materials segment are attained in the third quarter and the lowest are
realized in the first quarter when sales and earnings are substantially
below the levels realized in all subsequent quarters of the year.
Basis of Determining Sales Volume and Price Variances
Sales volume variances are calculated by multiplying the period-to-period
change in sales units by the prior period's unit sales prices. Sales price
variances are calculated by multiplying the period-to-period change in unit
sales prices by the current period's sales units. To the extent that products
and market areas are combined for these computations, the resultant "volume"
and "price" variances may each be affected by period-to-period changes in the
"mix" of product and market area sales.
Segment Sales and Earnings
Segment sales and earnings have been determined on the same basis as used
in prior Form 10-Q reports. Segment earnings are earnings before interest
expense and income taxes and after allocation of corporate expenses and
income, other than "interest income, etc.," (principally interest income
earned on cash items and gains or losses on corporate financing transactions),
and after assignment of equity income to the segments with which it is related
in terms of products and services. Allocations are based primarily on one or
a combination of the following factors: average gross investment, average
equity and sales.
RESULTS OF OPERATIONS
CONDENSED STATEMENTS OF CONSOLIDATED EARNINGS
SECOND QUARTER 1995 AS COMPARED WITH SECOND QUARTER 1994
Sales in the second quarter were $382.8 million, up 17% from last year's
second quarter level. The segment detail of that increase is as follows
(amounts in millions):
Second Quarter Sales
1995 1994 Increase
Construction Materials $238.2 $236.8 $ 1.4
Chemicals 144.6 89.9 54.7
Total $382.8 $326.7 $ 56.1
Construction Materials sales were up slightly from last year's second quarter
total. Shipments of crushed stone were virtually equal to last year's level,
while stone prices increased 5%. Second quarter shipments were affected by
unfavorable weather in some market areas. Chemicals sales were up 61% from
last year's level. The increase partially reflects the results of Callaway
Chemical Company, which was acquired August 1, 1994. Excluding the effect of
that acquisition, Chemicals sales increased 34% in the quarter due principally
to sharply higher caustic soda prices and higher prices for chlorinated
organic products.
Cost of goods sold in the second quarter of 1995 increased 8% from the 1994
level. The increase reflects the acquisition of Callaway Chemical Company,
higher raw material prices in the Chemicals segment and higher Construction
Materials costs. As a percentage of sales, cost of goods sold was 70% in the
second quarter of 1995 and 76% for the same period last year.
Selling, administrative and general expenses of $38.8 million increased 35%
from the 1994 second quarter level. This reflects principally the effect of
the Callaway Chemical Company acquisition and higher provisions for management
incentive plans.
Other income, net of other charges, was $3.5 million in the second quarter
as compared with the 1994 total of $4.2 million. The comparison reflects
lower gains on the sales of assets, partially offset by improved results from
the Crescent Market Project (the Company's joint venture to supply limestone
from Mexico to the U.S. Gulf Coast).
Earnings before interest expense and income taxes were $76.9 million, up 49%
from comparable 1994 earnings. The segment detail of this result is shown
in the following summary (amount in millions):
Second Quarter Earnings (Loss) Before
Interest Expense and Income Taxes
Increase
1995 1994 (Decrease)
Construction Materials $53.7 $55.8 $ (2.1)
Chemicals 23.2 (4.2) 27.4
Segment earnings 76.9 51.6 25.3
Interest income, etc. - .1 (.1)
Total $76.9 $51.7 $ 25.2
* After allocation of corporate expense and income, other than
"interest income, etc." (principally interest income earned on
short-term investment of funds and gains or losses on corporate
financing transactions), and after assignment of equity income
to the segments with which it is related in terms of products
and services.
Construction Materials segment earnings were down 4% from last year's result.
Higher costs and slightly lower volumes were partially offset by improved
prices. Some of the cost increases reflect higher spending on the development
of several new quarry sites. The Chemicals segment improvement reflects the
effect of higher selling prices for caustic soda and for chlorinated organic
products, which were partially offset by higher raw material costs. In
addition, the segment benefited from the earnings of Callaway Chemical
Company.
The provision for income taxes for the second quarter was $26.1 million, as
compared with last year's second quarter expense of $15.8 million. The
increase reflects the higher pretax earnings as well as the higher tax rate.
The effective tax rate was 35.3% for the quarter, up significantly from the
31.8% rate in 1994. The increase reflects principally a decreased relative
effect of statutory depletion, which had a greater impact on the 1994 rate
because of lower Chemicals earnings last year.
Second quarter net earnings of $47.7 million and earnings per share of $1.32
were up 41% and 43%, respectively, from comparable 1994 results.
CONDENSED STATEMENTS OF CONSOLIDATED EARNINGS
YEAR-TO-DATE COMPARISONS AS OF
JUNE 30, 1995 AND JUNE 30, 1994
Sales for the first half of 1995 increased $133.6 million from the same period
in 1994. Sales of the segments are summarized as follows (amounts in
millions):
Sales for the Six Months
Ended June 30
1995 1994 Increase
Construction Materials $393.7 $370.3 $ 23.4
Chemicals 283.5 173.3 110.2
Total $677.2 $543.6 $ 133.6
Construction Materials sales were up 6% over 1994, as both crushed stone
shipments and prices increased approximately 5%. Chemicals sales increased
64%, or 35% after adjusting for the Callaway acquisition, reflecting higher
prices.
Cost of goods sold for the first six months of 1995 increased 13%. As a
percentage of sales, cost of goods sold in 1995 and 1994 was 75% and 82%,
respectively.
Selling, administrative and general expenses were $76.2 million, up 35%. The
increase reflected the addition of Callaway Chemical Company and higher
management incentives.
Other income, net of other charges increased $3.4 million over comparable 1994
levels. This reflected improved results from joint ventures and higher gains
on the sale of assets.
First half earnings before interest expense and income taxes were $103.9
million, more than double the 1994 result of $46.2 million. Segment detail
is shown below (amount in millions):
Earnings (Loss) Before Interest Expense
and Income Taxes for the
Six Months Ended June 30
Increase
1995 1994 (Decrease)
Construction Materials $ 64.2 $54.4 $ 9.8
Chemicals 39.7 (8.4) 48.1
Segment earnings 103.9 46.0 57.9
Interest income, etc. - .2 (.2)
Total $103.9 $46.2 $57.7
* After allocation of corporate expense and income, other than
"interest income, etc." (principally interest income earned on
short-term investment of funds and gains or losses on corporate
financing transactions), and after assignment of equity income
to the segments with which it is related in terms of products
and services.
Construction Materials earnings were up 18% due to higher prices and volumes,
which were partially offset by increased operating costs. Chemicals earnings
were up substantially from the comparable loss of $8.4 million in 1994,
reflecting principally higher prices.
The provision for income taxes for the first half of 1995 was $34.6 million as
compared with last year's expense of $13.3 million. The increase reflects
the effect of the higher earnings and tax rate.
Net earnings of $63.7 million and earnings per share of $1.76 were more than
double the corresponding first half 1994 results.
On July 24, 1995, H. A. Sklenar, Chairman and Chief Executive Officer, made
certain statements concerning the Company's earnings outlook. Excerpts of the
relevant press release quoting Mr. Sklenar are as follows:
"Weather had an impact on first half results of our Construction
Materials business. Favorable conditions in the first quarter
probably drew some business from the second quarter while wet
conditions in the latter constrained stone shipments in several
of our important markets. Nonetheless, crushed stone shipments
in the latest quarter virtually equaled last year's level.
However, we are beginning to see some signs of softening in some
of our markets. This may limit our ability to achieve second
half stone shipments in excess of last year's level. As we see
it now, segment earnings for the half should approximate or
slightly exceed 1994's result. With this outcome, Construction
Materials will report record earnings for the year as a whole.
"After a dismal performance in 1994, our Chemicals business is
enjoying a strong and delightful resurrection this year. Second
quarter earnings for the segment exceeded our expectations,
thanks to continuing strong caustic soda prices, improved
pricing for chlorinated organics and some amelioration in raw
material costs. Favorable market conditions for caustic soda
and chlorinated organics should continue in the second half,
thus enabling the segment to achieve an outstanding earnings
performance for the year.
"The combined outlooks for our two businesses indicate that 1995
should be a year of records for the Company - records for sales,
net earnings and earnings per share."
LIQUIDITY AND CAPITAL RESOURCES
CONDENSED CONSOLIDATED BALANCE SHEETS - JUNE 30, 1995
AS COMPARED WITH DECEMBER 31, 1994 AND JUNE 30, 1994
AND
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
COMPARISONS FOR THE YEAR TO DATE AS OF
JUNE 30, 1995 AND JUNE 30, 1994
Working Capital
Working capital, exclusive of debt and cash items, was $216.8 million at
June 30, 1995, up 30% from the 1994 year-end total. Receivables were up due
to increased sales and inventories were higher due primarily to seasonal
build-ups in the Construction Materials segment. Working capital at June 30,
1995 increased 11% from the same date last year. Higher receivables and
inventories due to increased sales and the acquisition of Callaway Chemical
Company were partially offset by higher current liabilities.
The Company's current ratio, which is based on all components of working
capital, including cash and debt items, was 1.5 as of June 30, 1995. This was
down from the year-end 1994 ratio of 1.6 and the June 30, 1994 ratio of 1.8.
Cash Flows
First half net cash provided by operations totaled $68.1 million, up sharply
from the $37.8 million generated in the same period last year. This increase
reflects principally higher net earnings. Cash used for investing activities
totaled $67.9 million as compared with the $47.1 million used in last year's
first half. Higher purchases of property, plant and equipment and payments
for business acquisitions accounted for the increase. Cash used for financing
activities totaled $7.9 million as compared with cash provided of $15.3
million in 1994. This change reflects both lower net borrowings and some
purchases of common stock in 1995. There were no purchases of common stock in
the first half of 1994.
Common Stock Transactions
Pursuant to the Company's common stock purchase program, 58,600 shares of
common stock were purchased in the second quarter of 1995 at a total cost of
$3.2 million, equal to an average price of $54.29 per share. In the first six
months of 1995, 106,300 shares were purchased at a total cost of $5.6 million,
or $52.24 per share.
Property Additions
Property additions in the first half of 1995 totaled $66.4 million as compared
with $57.1 million in the same period last year. In the second quarter of
1995, the Chemicals segment acquired Rio Linda Chemical Company, Inc. Rio
Linda, which will be managed as part of Chemicals' Performance Systems
business unit, had sales of $12.1 million in 1994 and is based in Sacramento,
California. It manufactures small-scale chlorine dioxide generators and
markets related chemicals primarily to the water treatment, food processing
and pulp and paper industries.
Short-term Borrowings
Short-term borrowings as of June 30, 1995 and 1994 consisted of notes payable
to banks totaling $71.0 million and $45.2 million, respectively.
Long-Term Obligations
As of June 30, 1995, long-term obligations were 9.2% of long-term capital and
12.0% of shareholders' equity. The corresponding 1994 percentages were 10.3%
and 13.6%.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
As reported in the Company's Annual Report on Form 10-K, on
October 5, 1994, the Company received an Administrative Complaint,
Findings of Violation, Notice of Proposed Assessment of a Civil
Penalty and Notice of Opportunity to Request a Hearing Thereon
(the "Complaint") from the EPA alleging that the Company violated
various provisions of the Clean Water Act at its Geismar,
Louisiana, facility. On March 14, 1995, the Company entered into
a Consent Agreement and Order Assessing Administrative Penalties,
pursuant to which the Company, without admitting liability, paid
civil penalties totaling $55,000 to settle all NPDES permit
violations alleged by EPA through January 1995.
As reported in the Company's Annual Report on Form 10-K, the
Company is a Potentially Responsible Party ("PRP") at a chemical
waste site in Ascension Parish, Louisiana. In 1994 the Company
recorded an additional provision of $7 million to cover remaining
remediation, response and oversight costs. Very recently, in the
course of remediation, additional quantities of contamination
requiring treatment were discovered. Also, larger than
anticipated volumes of groundwater have required treatment.
As a result, the Company now is reevaluating the adequacy of
its reserves for cleanup of this site. It appears likely that
an additional provision of approximately $3 million may be
necessary.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits furnished in accordance with Item 601 of Regulation
S-K and included in Part I:
Exhibit 11 - Computation of Earnings per Share
Exhibit 12 - Computation of Ratio of Earnings to Fixed Charges
(b) Reports on Form 8-K
There were no reports on Form 8-K filed for the three months
ended June 30, 1995.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
VULCAN MATERIALS COMPANY
Date August 14, 1995 /s/ D. F. Sansone
Vice President, Finance
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
Consolidated Statement of Earnings for the six months ended June 30, 1995,
and the Consolidated Balance Sheet as of June 30, 1995 and is qualified
in its entirety by refernce to such financial statements.
</LEGEND>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
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<RECEIVABLES> 228092
<ALLOWANCES> 8381
<INVENTORY> 130386
<CURRENT-ASSETS> 393758
<PP&E> 1852887
<DEPRECIATION> 1142025
<TOTAL-ASSETS> 1255684
<CURRENT-LIABILITIES> 255318
<BONDS> 91927
<COMMON> 46573
0
0
<OTHER-SE> 717756
<TOTAL-LIABILITY-AND-EQUITY> 1255684
<SALES> 677207
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<CGS> 505234
<TOTAL-COSTS> 505234
<OTHER-EXPENSES> 2241
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<NET-INCOME> 63693
<EPS-PRIMARY> 1.76
<EPS-DILUTED> 1.76
</TABLE>
