Martin Marietta reports gains in first quarter 2017

Martin Marietta reported consolidated net sales in the first quarter of $791.7 million, an increase of 7.9 percent compared with the prior year’s first quarter.

In addition, the company reports setting a record in building materials net sales, which increased 8 percent to $728.4 million. Martin Marietta’s aggregate product line pricing increased 5.3 percent despite relatively flat volumes.

According to Martin Marietta, the increase in its building materials business, which includes the aggregate, cement and ready-mixed concrete, as well as asphalt and paving product lines, was driven by pricing gains in aggregate, cement and ready-mixed concrete.

The 5.3 percent price improvement was led by a 10.3 percent increase in the company’s Southeast group. In addition, ready-mixed concrete pricing increased 3.3 percent and the cement product line advanced 2.5 percent.

Although aggregate product line shipments were relatively flat, the gross margin for Martin Marietta’s building materials’ business was 17.2 percent.

“Our 2017 performance was driven by each product line in our building materials business generating solid top-line growth, with overall gains coming from aggregates and ready-mixed concrete,” says Ward Nye, chairman, president and CEO of Martin Marietta. “Broad-based pricing improvements were seen across our aggregates product line, led by the Southeast group’s 10.3 percent increase.”

For all of 2017, Martin Marietta expects the public sector to continue to grow with FAST Act projects accelerating and state and local initiatives increasing infrastructure funding. In addition, the company projects nonresidential construction to increase in both the heavy industrial and commercial sectors.