Martin Marietta’s quarterly revenues, earnings rise

By |  November 7, 2013

Martin Marietta Materials Inc. reported double-digit increases in revenues and earnings for the third quarter. Ward Nye, Martin Marietta president and CEO, says the ongoing recovery in private-sector construction, drove the company’s third-quarter growth.

“I am especially proud of the fact that our company achieved these strong results despite the continued public-sector construction headwinds,” Nye says. “The combination of a 12 percent increase in consolidated net sales over the prior-year quarter and our ongoing focus on controlling costs resulted in a 13 percent increase in earnings per diluted share. These results reflect new third-quarter records for both net sales and earnings from operations in the specialty products business, as well as volume and pricing growth in the aggregates product line.”

According to a press release, Martin Marietta’s aggregates business experienced volume and pricing increases from all reportable segments and pricing growth in all product lines. Aggregates product line shipments increased 8.1 percent, and the specialty products business benefitted from strong dolomitic lime sales to achieve a 13 percent increase.

“We are encouraged by significant improvements in our markets and believe, as do most third-party forecasters, that significant upside potential remains in both the residential and nonresidential construction segments,” Nye says. “Additionally, our aggregates business will benefit from the current boom in shale gas production, as well as planned follow-on development. We are confident that these trends bode especially well for our business.”

The nonresidential market, which comprised 30 percent of Martin Marietta’s third-quarter aggregates shipments, increased 19 percent. Growth was notable in both commercial construction and the energy sector, according to the company. The residential market achieved volume growth of 15 percent and accounted for 13 percent of Martin Marietta’s quarterly shipments.

“Shipments to the infrastructure end-use market were essentially flat with the prior-year quarter,” Nye says. “Federal budget and deficit disputes and the uncertainty over future highway funding levels beyond the September 2014 expiration of [MAP-21], have contributed to the reluctance of many states and municipalities to commit to large-scale projects.”

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