Vulcan Materials Company For a printer friendly version, click here. Monday, April 30, 2007 VULCAN ANNOUNCES RECORD FIRST QUARTER EARNINGS PER SHARE Birmingham, Alabama – April 30, 2007 – Vulcan Materials Company (NYSE:VMC) today announced record first quarter net earnings of $89 million, or $0.91 per diluted share, a 34 percent increase from the prior year’s first quarter net earnings of $0.68 per diluted share. First quarter net sales were $630 million compared with $642 million in the prior year. Don James, Vulcan’s Chairman and Chief Executive Officer, stated, “We are very pleased with our first quarter operating results and the year-over-year growth in earnings. We expect the pricing environment for aggregates to remain favorable with demand supported by growth in public infrastructure and private nonresidential construction.” As previously announced, net earnings in the first quarter of 2007 include a gain on sale of real estate in California of $0.27 per diluted share, which increased earnings $0.26 per diluted share after related incentive costs. Net earnings in the prior year’s first quarter included a $0.07 per diluted share gain from the adjustment in the carrying value of the ECU earn-out (See Table E). Operating Results First quarter operating earnings were $137 million, compared with $99 million in the prior year. Gross profit as a percentage of net sales, which excludes gains on sale of real estate, was 26.5 percent, up 100 basis points from the prior year’s level of 25.5 percent. Double-digit price increases for the Company’s key products more than offset the earnings effect of lower sales volumes. The average unit price for aggregates in the first quarter increased 16 percent from the prior year’s level, while aggregates shipments decreased 14 percent. First quarter 2007 aggregates shipments declined due to less favorable weather than in the first quarter of 2006 and weakness in residential construction. During last year’s first quarter, aggregates shipments surged 13 percent due to the combination of favorable weather and strong demand, resulting in significantly higher than normal first quarter shipments. Earnings in the asphalt product line increased significantly as higher selling prices more than offset higher costs for key raw materials and lower sales volumes. First quarter concrete earnings were lower than the prior year’s level as higher prices were more than offset by lower sales volumes and higher costs for raw materials. Concrete sales decreased $17 million from the prior year’s first quarter and were a primary driver of the 2 percent decrease in overall net sales in the first quarter. Selling, administrative and general expenses in the first quarter increased approximately $9 million from the prior year due mostly to higher employee-related costs and expenses associated with certain corporate initiatives including the pending acquisition of Florida Rock Industries, improving business processes and the replacement of legacy information systems. Gain on sale of property, plant and equipment increased approximately $46 million from the prior year’s first quarter due primarily to the aforementioned sale of real estate in California during January 2007. Other income decreased approximately $11 million from the prior year’s first quarter. Other income in the current year’s first quarter includes a $0.7 million gain in the carrying value of the ECU earn-out compared with a $12.2 million gain in the prior year’s first quarter. In March, the Company received $8.4 million in cash from the 5CP earn-out agreement with the purchaser of its former Chemicals business. The cash receipt had no earnings effect in the current quarter. This earn-out is to be paid annually in the first quarter, subject to certain conditions, through 2013. During the first quarter, the Company acquired aggregates operations in Illinois and North Carolina. All results are unaudited. Outlook – Full Year 2007 Commenting on Vulcan’s outlook for 2007, Mr. James stated, “We remain confident in our ability to continue str For further information contact Mark Warren (IC) or David Donaldson (MC), Operations, at (205) 298-3220.