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Martin Marietta Materials, Inc. (NYSE:MLM) today announced results for the third quarter and nine months ended September 30, 2012.
Ward Nye, President and CEO of Martin Marietta Materials, stated, “Our strong third-quarter results reflect both revenue and profit growth that demonstrate the underlying strength of our legacy operations as well as the contribution from our recent acquisitions in the Denver, Colorado, market. In terms of our overall performance, the heritage Aggregates business benefitted from both continued strong pricing trends and increased productivity, and the Specialty Products business generated record earnings from operations. Our bottom line continued to reflect the diligent manner in which we control costs. As a result, our earnings per diluted share of $1.36, a 27% increase over the prior-year quarter, is especially noteworthy given that our team achieved this in an uncertain economic climate that has been marked by a reluctance by governmental bodies and private industry to commit to long-range capital projects.
“We also see several positive trends in construction activity. First, we continue to benefit from recovery and growth in the residential sector end-use market, which is reporting a 14% increase in heritage aggregates product line shipments over the prior-year quarter. Second, with the passage of the
Moving Ahead for Progress in the 21st Century Act, or MAP-21, a twenty-seven-month Federal surface transportation bill intended to expedite project approvals and limit spending for programs unrelated to core transportation needs, federal highway funds can be obligated with more certainty. Consequently, many of our key states are taking steps to utilize various funding alternatives to support important infrastructure projects. Finally, it seems a backlog of construction work is awaiting, what we believe to be, a general restoration of confidence in the current economic and political environment. We anticipate these positive trends will continue and provide the prospect for increasing volume momentum as we move forward into 2013.”
SIGNIFICANT ITEMS (UNLESS NOTED, ALL COMPARISONS ARE WITH THE PRIOR-YEAR THIRD QUARTER)
Earnings per diluted share of $1.36 compared with $1.07
Consolidated net sales of $539.1 million compared with $445.0 million
Heritage aggregates product line pricing increased 4.1%; volume decreased 3.8%
Specialty Products net sales of $49.4 million and record third-quarter earnings from operations of $17.0 million
Consolidated selling, general and administrative expenses (SG&A) decreased 140 basis points as a percentage of net sales
Consolidated earnings from operations of $91.1 million compared with $80.0 million
MANAGEMENT COMMENTARY (UNLESS NOTED, ALL COMPARISONS ARE WITH THE PRIOR-YEAR THIRD QUARTER)
Nye continued, “Consolidated net sales increased over 20%, with the recently acquired Denver, Colorado, area businesses contributing $92 million in the quarter. These operations once again exceeded our expectations, reflecting positive construction trends in that market where the rate of growth in highway contract awards ranks among the highest in the country, and, importantly, construction-related employment is well above the national average. Nonresidential construction activity also continues to improve in the market with commercial real estate realizing increased lease rates and decreasing vacancies. Year-to-date housing permits in Colorado increased more than 60%, outpacing the national average, while single-family home sales have increased significantly over the prior-year period.