Florida Rock Industries, Inc. Announces Third Quarter Results

Business Wire, July 30, 2007

JACKSONVILLE, Fla. -- Florida Rock Industries, Inc. (NYSE:FRK) today announced net income of $36,054,000 or $.54 per diluted share for the third quarter of fiscal year 2007 versus $58,317,000 or $.87 per diluted share for the same quarter of fiscal year 2006. Merger expenses of $4,422,000 ($2,852,000 after tax) are included in this third quarter net income.

Consolidated total sales for the quarter decreased 23.6% to $275,631,000 from $360,993,000 in the same quarter last year driven by volume decreases in all three segments and lower sales prices for cement and concrete block. Aggregates volume decreased 20.9%, ready-mix yards decreased 25.8%, block volume fell 52.9% and cement tonnage decreased 27.5% over the third quarter of 2006. Gross profit decreased 30.4% to $84,475,000 compared to $121,405,000 in the same quarter last year. Aggregate prices at producing locations were up 16.8% over the third quarter last year and ready-mix concrete prices held on to a 3.6% year over year gain.

Third quarter FY 2007 operating profit decreased 40.0% to $54,181,000 as compared to $90,296,000 in the third quarter of 2006. There are no real estate gains included in this quarter's operating profit versus $1,621,000 for the same quarter last year.

Selling, general and administrative expenses for the third quarter of fiscal year 2007 were $30,294,000 or 11.0% of sales as compared to $32,730,000 and 9.1% of sales for the third quarter of 2006. The dollar decrease is primarily attributable to the decrease in profit sharing and management incentive compensation, which is tied to earnings exclusive of real estate gains. This year's third quarter included $4.4 million of expenses (before taxes) related to the proposed merger of the Company with Vulcan Materials Company.

Commenting on the third quarter of fiscal year 2007 results, President and CEO John Baker stated that:

"While the significant decline in residential construction remains with us and is yet to level out, non-residential and transportation spending remain strong. We continue to focus on our costs even as we pursue the remaining steps to consummate our pending merger with Vulcan."

For the nine months ended June 30, 2007, consolidated total sales decreased 20.5% to $820,367,000 from $1,031,332,000 in the same period of fiscal year 2006. For the same period gross profit decreased 26.8% to $245,012,000 from $334,803,000. Net income for the nine months decreased 32.6% to $106,543,000 versus $158,142,000 in fiscal year 2006. After-tax real estate gains in 2007 were $2,565,000 compared to after-tax real estate gains in the first nine months of 2006 of $2,103,000 (including after-tax gains of $1,802,000 from an exchange included in other income). Merger expenses for the nine months were $7,422,000 ($4,787,000 after tax).

Outlook: The outlook for non-residential construction, highway and infrastructure spending remains positive but residential construction continues to show weakness with no clear signs of leveling.

The Company will also host a conference call at 11:00 a.m. E.D.T. on Tuesday, July 31, 2007. Analysts, stockholders and other interested parties may access the teleconference live by calling 1-888-682-4386 (security code FLAROCK) within the United States. International callers may dial 334-323-7224 (security code FLAROCK). Computer audio is available via the Internet through the Conference America, Inc. website at http://www.yourcall.com/real/players/frk073107.ram or via the Company's website at http://www.flarock.com. If using the Company's website, click on the Investor Relations tab, then select Florida Rock Industries, Inc. Conference Stream, next select the appropriate link for the current conference. An audio replay will be available for sixty days following the conference call. To listen to the audio replay, dial toll free 877-919-4059, international callers dial 334-323-7226. The passcode for the audio replay is 52723035. Replay options: "1" begins playback, "4" rewind 30 seconds, "5" pause, "6" fast forward 30 seconds, "0" instructions, and "9" exits recording. There may be a 30-40 minute delay until the archive is available following the conclusion of the conference call.

Florida Rock Industries, Inc. is one of the nation's leading producers of construction aggregates, a major provider of ready-mixed concrete and concrete products in the Southeastern and Mid-Atlantic States and a significant supplier of cement in Florida and Georgia.

Investors are cautioned that any statements in this press release which relate to the future are, by their nature, subject to risks and uncertainties that could cause actual results and events to differ materially from those indicated in such forward-looking statements. These include our ability to continue to mine at the Miami quarry following the recent court ruling invalidating our permit, risks and uncertainties related to approval and consummation of the proposed merger with Vulcan Materials Company, general business conditions, competitive factors, political, economic, regulatory and weather conditions, pricing, government spending levels on transportation projects, interest rate changes, energy and transportation costs and technological contingencies. Additional information regarding these and other risk factors and uncertainties may be found in the Company's filings with the Securities and Exchange Commission