Volume, pricing increase in second quarter 2019 at Martin Marietta

Nye

Aggregate volume and pricing at Martin Marietta improved 9.9 percent and 3.4 percent, respectively, during the second quarter, compared to the same period last year.

In addition, same-store aggregate volume and pricing improved 6.1 percent and 4.1 percent, respectively, highlighting a quarter of growth for the Raleigh, North Carolina-based producer.

“We are proud to have established new quarterly records for revenues, gross profit and adjusted [earnings before interest, tax, depreciation and amortization] driven by increased aggregates shipments, continued pricing momentum across the building materials business and improved cost management,” says Ward Nye, president and CEO of Martin Marietta. “These record-setting second-quarter results demonstrate Martin Marietta’s strong execution as we capitalized on the robust underlying demand across our geographic footprint.”

Second-quarter operating results reflect strong underlying product demand, Martin Marietta says, most notably in North Carolina, Georgia, Iowa and Maryland, as customers address weather-deferred projects and backlogs from 2018. For example, Colorado and Texas – the company’s two highest revenue states – experienced severe levels of snow and precipitation, respectively.

“Construction activity in our top 10 states is outpacing the nation as a whole, as evidenced by recent rends in total construction starts,” Nye says. “Importantly, aggregates shipments to our three primary end-use markets increased for a second consecutive quarter, demonstrating the breadth of overall demand in our key regions.”

Aggregate shipments also increased 10 percent across the board during the second quarter at Martin Marietta.

“Aggregates shipments increased 10 percent, led by our Mid-America and Southeast groups which achieved double-digit growth as these markets benefited from improving strength in public- and private-sector spending and contributions from acquired operations,” Nye says.

Shipments for the Mid-America group operations increased 15.9 percent due to both commercial and infrastructure projects.

Shipments for the Southeast group (12.7 percent) improved by double-digits, supported by strength in the north Georgia and Florida markets. Pricing improved 7.3 percent, spurred by a higher percentage of long-haul shipments, according to the company.

Despite unfavorable weather forcing project delays, shipments for the West group (1.1 percent) also improved while pricing increased 3.4 percent.

“Based on these current trends and our strong first-half performance, we are raising our full-year outlook and believe 2019 will be another record year for Martin Marietta,” Nye says.