Martin Marietta Materials Inc. announced results for the second quarter and six months ended June 30, 2012.
The company is reporting:
- Consolidated net sales of $491.2 million compared with $409.6 million from the prior second quarter.
- Heritage aggregates product line volume increased 2.8 percent.
- Heritage aggregates product line pricing increased 2.4 percent.
- 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.
President and CEO Ward Nye, 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.”
“Heritage shipments in the infrastructure end-use market, which represents more than half of our aggregates business, increased 3 percent for the quarter,” Nye said. “We were gratified to see the Moving Ahead for Progress in the 21st Century Act, or MAP-21, signed into law earlier in the month. MAP-21 is a two-year federal surface transportation bill intended to expedite project approvals and limit spending for programs outside of core transportation needs. The bill provides highway expenditures at current levels, $40 billion per year, with modest increases to reflect projected inflation and reform provisions. The funding provided by this multi-year bill brings a degree of fiscal certainty to those states, counties and municipalities that were subjected to a series of short-term continuing Federal resolutions since 2009 and hesitant to initiate needed infrastructure projects. While the impact of MAP-21 is not expected to generate meaningful construction activity in 2012, we fully anticipate that our shipments will increase over the next several years, with more clarity into the magnitude of that increase as we move into late summer/early fall state Department of Transportation project lettings.”