Martin Marietta ‘off to a strong start’ to 2021

Martin Marietta reported that its building materials business achieved record first-quarter revenues and gross profit.

Martin Marietta’s products and services revenues of $856.6 million increased 3.1 percent, and product gross profit of $148.3 million increased 25.1 percent.

During the quarter, the building materials business experienced broad-based improvements in product demand, as evidenced by shipment levels on days not impacted by harsh winter weather. Aggregate, cement and ready-mixed concrete operations in Texas experienced temporary disruptions from February’s winter storm and subfreezing temperatures, the company says.

In addition, the aggregate and downstream operations in Colorado – Martin Marietta’s second-largest revenue-generating state – faced a difficult comparison versus the first quarter of 2020, which benefitted from unseasonably favorable weather conditions.

Aggregate shipments declined 3 percent in the quarter while pricing increased 3.4 percent – or 2.5 percent on a mix-adjusted basis.

Martin Marietta’s East Group shipments increased 0.2 percent, reflecting strong residential and nonresidential construction activity in the Carolinas, Georgia, Florida and Maryland. Those more than offset the Midwest’s later start to the construction season, as compared with the prior year, as well as reduced wind energy construction activity. Pricing increased 3.9 percent, with improvements in both the East and Central divisions.

Martin Marietta’s West Group shipments decreased 7.7 percent despite robust underlying demand. Unfavorable winter weather conditions in Texas and Colorado, as well as reduced energy-sector demand, contributed to the performance. Geographic mix limited pricing growth to 1.9 percent, the company says.

First-quarter aggregate gross profit per ton shipped improved 34.4 percent.

Nye

“Following record performance in 2020, our company is off to a strong start to what we expect to be another outstanding year for Martin Marietta,” says Ward Nye, chairman and CEO of Martin Marietta. “For the first three months of 2021, we delivered solid operational and financial performance, establishing first-quarter records for revenues, profits and safety. These results are a testament to our differentiated business model and dedication to our proven Strategic Operating Analysis and Review plan.”

Martin Marietta remains confident that favorable pricing dynamics will continue, supported by the company’s locally driven pricing strategy.

Additionally, Martin Marietta anticipates single-family housing growth, expanded infrastructure investment and notable heavy industrial projects of scale will drive increased shipment levels. Martin Marietta also expects these demand drivers, combined with the ancillary construction necessary for housing community build-outs and the potential for increased infrastructure investment from a comprehensive federal surface transportation package, to result in sustained, multi-year growth in product demand.

“Our record-setting first-quarter results underpin our confidence in Martin Marietta’s ability to continue delivering sustainable growth and superior shareholder value creation in 2021 and beyond,” Nye says.

Upon releasing its first-quarter report, Martin Marietta also noted that it acquired Minnesota-based Tiller Corp.