Martin Marietta Materials, Inc. Announces 2012 Fourth-Quarter And Full-Year Results

Martin Marietta Materials, Inc. (NYSE:MLM) today announced results for the fourth quarter and year ended December 31, 2012.

Ward Nye, President and CEO of Martin Marietta Materials, stated, “We were pleased that 2012 concluded the same way it started – with growth in both heritage aggregates product line shipments and average selling price. Notably, heritage volume growth in the fourth quarter was achieved in each of our reportable groups, leading to an overall increase of 5.0%. Underlying this improvement was expansion in our nonresidential and residential end-use markets, continuing trends we have experienced throughout the year. Our Colorado operations acquired in December 2011 also provided an important contribution to the quarter. Additionally, we see tangible signs that the infrastructure end-use market is poised to benefit from the Moving Ahead for Progress in the 21 ^st Century Act, or MAP-21, as well as other federal- and state-sponsored funding initiatives. Our 2012 results and trends, coupled with external indicators, have provided optimism that our momentum will continue in 2013.”

NOTABLE ITEMS FOR THE QUARTER (UNLESS NOTED, ALL COMPARISONS ARE WITH THE PRIOR-YEAR FOURTH QUARTER)

• Earnings per diluted share of $0.46 compared with $0.32
• Consolidated net sales of $457.9 million compared with $374.7 million
• Heritage aggregates product line volume increased 5.0%; pricing increased 1.0%
• Specialty Products net sales of $50.6 million and earnings from operations of $15.8 million
• Consolidated selling, general and administrative expenses (SG&A) decreased 20 basis points as a percentage of net sales despite absorbing a $3.3 million charge for restructuring initiatives
• Consolidated earnings from operations of $40.0 million compared with $20.7 million; 2011 results included $15.1 million of business development expenses

NOTABLE ITEMS FOR THE YEAR (ALL COMPARISONS ARE VERSUS 2011)

• Adjusted earnings per diluted share (excluding business development expenses of $0.46 and $0.25 per diluted share in 2012 and 2011, respectively) of $2.29 compared with $2.03
• Earnings per diluted share of $1.83 compared with $1.78
• Net sales of $1.839 billion compared with $1.520 billion
• Heritage aggregates product line volume up 2.9%; pricing up 2.5%
• Specialty Products record net sales of $202.2 million and record earnings from operations of $68.5 million compared with $200.6 million and $66.3 million, respectively
• SG&A expenses down 70 basis points as a percentage of net sales

MANAGEMENT COMMENTARY (UNLESS NOTED, ALL COMPARISONS ARE WITH THE PRIOR-YEAR FOURTH QUARTER)

Nye continued, “Heritage aggregates product line volume growth reflects a 13% increase in shipments in both the nonresidential and residential end-use markets. The nonresidential market is our second largest aggregates product line end use, comprising 31% of quarterly shipments. Volume growth was notable in the energy sector, as well as the commercial construction sector, which we believe is beginning to benefit from six consecutive quarters of improvement in the residential end-use market. Generally, growth in the commercial component of nonresidential construction follows the residential construction market with a 12- to 18-month lag.

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