Acquisition contributes to Martin Marietta’s quarterly growth

Martin Marietta’s Ward Nye

Martin Marietta Materials Inc. released its third-quarter results, reporting a 53 percent growth in net sales that’s due in large part to the acquisition of Texas Industries Inc.

“Third-quarter 2014 results reflect the acquisition of TXI, the benefits of our larger presence in the western United States, continued growth and enhanced profitability across our heritage business, and our disciplined approach to cost,” says Ward Nye, chairman, president and CEO of Martin Marietta.

According to Nye, the TXI acquisition added $274 million in net sales and contributed $44.5 million to Martin Marietta’s gross profit.

“This transformational acquisition, when combined with our solid heritage business, creates a strong and broad foundation for dynamic revenue and profit growth in 2015 and beyond, positioning Martin Marietta to capitalize on increasing demand for building materials,” Nye says.

In addition, Martin Marietta reports achieving growth in its heritage aggregates product line shipments and pricing. Nye says the company was led by strengthening economic activity in its western group.

“Our heritage aggregates-related downstream product lines achieved improved profitability compared with the prior-year quarter, and the specialty products business achieved record third-quarter net sales and earnings,” he says.

Shipments to the infrastructure market comprised 47 percent of Martin Marietta’s quarterly volumes and increased 3 percent, the company says. The nonresidential market represented 30 percent of quarterly shipments and increased 3 percent.