Vulcan Materials (VMC) Focus on Aggregates May Lift Margins
Vulcan Materials (NYSE:VMC) is strategically shifting focus to its higher-margin aggregates business. This move aims to boost profitability following a sale of lower-margin concrete operations and acquisitions in key markets, potentially improving its financial performance amid steady infrastructure demand. The company's gross margin rose to 27.6% in the first quarter, even before the latest deal closed.
* Watch Vulcan Materials (:) as it executes its strategy of divesting lower-margin assets and acquiring higher-margin ones. Continued infrastructure spending may support demand for its core aggregates business. * Investors may monitor Martin Marietta Materials (:) and Eagle Materials (N:) for comparative strategic shifts within the aggregates and construction materials sector.
