Vulcan Announces Arbitration Results

News provided by

Feb 24, 2011, 08:15 ET

BIRMINGHAM, Ala., Feb. 24, 2011 /PRNewswire/ -- Vulcan Materials Company (NYSE: VMC) today announced that it has received favorable results in two recent arbitrations.

(Logo: http://photos.prnewswire.com/prnh/20090710/CL44887LOGO )

In the first arbitration, which related to the settlement in 2007 of two lawsuits brought against the Company's divested Chemicals business, the Company was awarded $13.5 million against one of its insurers. Of this award, $6 million pretax was recognized in earnings in the third quarter of 2010. The remaining $7.5 million pretax amount will be recognized in earnings in the first quarter of 2011. When combined with settlements reached earlier with four other insurers, the Company now has recovered $37.9 million of the total amounts paid in settlement and for defense expenses in this litigation.

The second arbitration related to the $40 million settlement announced on May 18, 2010 of a lawsuit brought against the Company by the State of Illinois and the Illinois Department of Transportation. The Company recorded a charge against earnings for this amount and certain related defense expenses in the second quarter of 2010. In this arbitration, the panel ordered that the Company was entitled to recover $25.5 million under two insurance policies for a portion of the amounts paid in settlement and for defense expenses. The $25.5 million pretax award will be recognized in earnings in the first quarter of 2011. A further arbitration proceeding to recover additional amounts paid in settlement and for defense expenses is pending against another insurer.

Vulcan Materials Company, a member of the S&P 500 index, is the nation's foremost producer of construction aggregates and a major producer of other construction materials. For more information about Vulcan Materials Company, visit www.vulcanmaterials.com.

SOURCE Vulcan Materials Company