Vulcan Materials restructures to save $30 million annually
As a result of the consolidation, Vulcan expects to record a charge of approximately $10 million on a pre-tax basis, or $0.05 per share after tax, during the fourth quarter of 2011. This charge will consist primarily of severance costs. Vulcan expects to substantially complete the consolidation in the first quarter of 2012.
Vulcan Materials will continue to report financial results for its four operating segments – Aggregates, Concrete, Asphalt Mix and Cement.
These plans relate to an action that was approved by Vulcan’s board prior to receiving a hostile takeover bid on Dec. 12 from Martin Marietta Materials, Inc. to exchange Vulcan common stock for Martin Marietta common stock.
Vulcan has not yet made a recommendation to its shareholders. Vulcan’s Board of Directors is continuing to review the offer and says the board intends to advise shareholders of its recommendation by Dec. 23, 2011 via a Solicitation/Recommendation statement on Schedule 14D-9 that will be filed with the Securities and Exchange Commission and made available to Vulcan shareholders, z according to a press release from Vulcan. The Board continues to advise shareholders to take no action at this time pending the completion of its review.
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