Martin Marietta Materials, Inc. (NYSE:MLM) today announced results for the second quarter and six months ended June 30, 2012.
Ward Nye, President and CEO of Martin Marietta Materials, stated, “Our second-quarter results once again reflect the powerful combination of increases in shipment volume and average selling prices in our heritage aggregates product line, which led to a 150-basis-point improvement in our heritage aggregates business operating margin (excluding freight and delivery revenues). Underlying these increases are continuing indications of recovery in certain of our markets, predominantly in the western United States. In particular, heritage volume growth in Texas was driven by increased shipments to both the energy sector and the residential end-use market. We were also pleased with the strong results reported by our Specialty Products business, which established a new second-quarter record for net sales. Looking ahead, the positive momentum generated in the first half of the year, together with the recent passage of a new federal highway bill and regionalized improvement in home building, have bolstered our optimism for construction activity.”
NOTABLE ITEMS (ALL COMPARISONS, UNLESS NOTED, ARE WITH THE PRIOR-YEAR SECOND QUARTER)
- Adjusted earnings per diluted share of $0.92, excluding a $0.12 per diluted share charge for business development expenses; including these charges, earnings per diluted share was $0.80 compared with $0.78
- Consolidated net sales of $491.2 million compared with $409.6 million
- Heritage aggregates product line volume increased 2.8%
- Heritage aggregates product line pricing increased 2.4%
- Specialty Products net sales of $50.4 million and earnings from operations of $17.5 million
- Consolidated selling, general and administrative expenses (“SG&A”) decreased 40 basis points as a percentage of net sales
- Consolidated earnings from operations of $68.5 million, excluding $9.2 million of business development costs, compared with $64.7 million
MANAGEMENT COMMENTARY (ALL COMPARISONS, UNLESS NOTED, ARE WITH THE PRIOR-YEAR SECOND QUARTER)Nye continued, “For the quarter, heritage aggregates product line shipments increased 2.8% over the prior-year period. This growth was led by a 7.6% increase in our West Group, with heritage volumes particularly strong in Texas, driven by robust construction activity, and in our Midwest Division, particularly Iowa, where the mild winter permitted an early start to the construction season. Our Mideast Group reported heritage volume growth of 2.9%, with heavy highway projects in the Indiana and Ohio markets offsetting declines in our North Carolina markets where construction project delays have shifted work originally planned for the second quarter into the second half of the year. Our Southeast Group experienced a 10.1% decline in heritage aggregates product line shipments, resulting from economic growth in the region lagging national trends, principally due to weak job growth and continued high foreclosure rates.