Vulcan Materials Co
The initiative, which will affect about 200 jobs, is expected to generate pre-tax savings of about $30 million per year. Staffing at plant facilities will be largely unaffected.
The company expects to record a severance charge of about $10 million on a pre-tax basis, or 5 cents per share after tax, during the fourth quarter of 2011. Vulcan expects to mostly complete the consolidation in the first quarter of 2012.
Recently, rival Martin Marietta Materials Inc
Vulcan and Martin Marietta have seen their earnings power sag since 2007, when the U.S. housing market collapsed. The construction materials companies also depend on highway funding and might benefit from consolidation, with little sign of a U.S. highway bill being passed in the near term.
Shares of the Birmingham, Alabama-based company closed at $38.13 on Monday on the New York Stock Exchange. (Reporting by Soham Chatterjee in Bangalore; Editing by Gary Hill)