Quarterly volumes, pricing up at Martin Marietta

By |  May 5, 2016

martin marietta logoMartin Marietta released its first-quarter performance results, announcing an aggregates product-line volume increase of more than 13 percent and price increases of more than 8 percent.

“We are especially pleased to report a record first quarter even as we are only in the early stage of recovery in broadly based construction activity,” says Ward Nye, chairman, president and CEO of Martin Marietta. “Our ability to perform so well without the benefit of consistent macroeconomic support reflects positively on Martin Marietta’s disciplined execution against our strategic priorities.

According to Martin Marietta, its Mid-America Group led the company with a 28 percent increase in aggregates product-line shipments, resulting from the start of several large, principally state-funded highway projects across North Carolina and South Carolina; and increased residential and non-residential construction activity.

Aggregates product line shipments reflect growth in all end-use markets, the company adds. Shipments to the infrastructure market comprised 39 percent of quarterly volumes and increased 13 percent. Growth was driven by large projects in North Carolina and the Southeast, two areas that passed legislation in 2015 increasing near- and long-term state infrastructure spending, according to Martin Marietta.

The nonresidential market represented 33 percent of quarterly aggregates product-line shipments and increased 14 percent. The Mid-America Group led this area with a 50 percent increase in heavy nonresidential and a 25 percent increase in light nonresidential, Martin Marietta adds.

An improving economy is driving business investment in, for example, industrial warehouse and distribution facilities, which have been dormant in much of the Mid-America Group’s markets over the past several years. The company’s West Group saw a slight increase in nonresidential activity because the Texas economy generated a range of projects replacing energy-related shale shipments currently displaced by volatile oil prices.

In addition, the residential market accounted for 18 percent of Martin Marietta’s quarterly aggregates product-line shipments. Volumes to this segment increased 20 percent as the housing recovery continues and expands, particularly in the Southeast.

Overall, aggregates product-line shipments increased 13.3 percent. Geographically, the Mid-America Group led this area with a 27.8 percent increase. The Southeast and West Groups achieved increases of 5.6 percent and 5.4 percent, respectively.

An aggregates product-line pricing improvement of 8.1 percent reflects growth in all reportable groups, led by an 11.3 percent increase in the West Group, the company adds. In addition to north Texas, double-digit pricing growth was achieved in central Texas, south Texas and in Colorado markets. The Southeast Group and Mid-America Group reported increases of 7.3 percent and 4.3 percent, respectively.

This article is tagged with , , , , , and posted in News
Avatar photo

About the Author:

Kevin Yanik is editor-in-chief of Pit & Quarry. He can be reached at 216-706-3724 or kyanik@northcoastmedia.net.

Comments are closed