Zacks Investment Research downgraded shares of Vulcan Materials Company (VMC) from OUTPERFORM to NEUTRAL on September 05, 2012, with a target price of $40.00.
Vulcan's second quarter net loss of $0.02 per share significantly missed the Zacks Consensus Earnings Estimate of $0.06 per share due to decline in revenue and volumes. Total revenue fell 1.1% due to decline in shipments and an unfavorable geographic mix in the Aggregates segment. Following the lackluster growth in the second quarter, we downgrade our recommendation on the stock from Outperform to Neutral. Vulcan expects the second half results to be better than the first half banking upon the cost reduction efforts and better earnings in the Aggregates, Concrete and Asphalt segments. However, we prefer to wait and see if the company actually delivers on the bullish second half outlook.
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