Martin Marietta Materials Inc. reported record results for the third quarter ended Sept. 30. The company is reporting total revenues of just over $1.2 billion versus just under $1.1 billion for the year-ago period.
- Aggregates revenues were $688 million, with gross profit of $209 million and a gross margin of 30.4 percent.
- Cement revenues were $98 million, with gross profit of 33 million and a gross margin of 33.1 percent.
- Ready mix revenues were $255 million, with gross profit of 21 million, and gross margin of 8.1 percent.
Ward Nye, chairman, president and CEO of Martin Marietta, stated, “Our record third-quarter results demonstrate Martin Marietta’s strong execution as we capitalized on the improving strength of the current construction cycle while successfully managing through near-term challenges. Aggregates, cement and ready mixed concrete shipments meaningfully accelerated in July and August under normal operating conditions. Pricing also improved, highlighting robust product demand across our geographic footprint. In September, extraordinary weather challenges, including record Texas rainfall and devastation from Hurricane Florence, mostly in the Carolinas, adversely impacted our third quarter. As a result, Texas, our largest state by revenues, and North Carolina, our third-largest state by revenues and leading state by unit profitability, were disproportionately negatively affected during the industry’s busiest and most profitable period. Despite these short-term disruptions, we remain on track to once again deliver record revenues and EBITDA (Earnings Before Interest, Taxes, and Depreciation and Amortization) for the full year, and we are well-positioned to continue our growth trajectory in 2019.
“We believe the ongoing construction cycle will continue to promote sustainable and steady growth for the foreseeable future, fueled by strong underlying demand and the long-awaited arrival of increased public-sector activity,” Nye continued. “A compelling need for greater infrastructure investment exists to address much-needed maintenance and improvements, support economic growth and rebuild from weather events. We are encouraged by the recent and ongoing actions state and local governments are taking to secure additional funding for transportation projects. Indeed, Martin Marietta is poised to benefit from an acceleration in public lettings and contract awards in key states such as Texas, Colorado, North Carolina, Georgia and Florida. We are prepared to meet these future market demands. Important catalysts to do so will come from increased contractor capacity and logistics improvements. While getting better, these bottlenecks have nonetheless contributed to project delays and constrained construction growth in recent years. That said, these factors are also extending the construction cycle and promoting steady growth.”
Nye concluded, “Assessing these macroeconomic factors holistically and applying them to Martin Marietta, we anticipate increased private-sector demand, improving infrastructure construction activity and favorable pricing trends throughout 2019. We expect our key states to benefit from continued, favorable construction growth due to their attractive economic drivers and population trends. Our strategic geographic footprint, leading market positions, disciplined execution of our strategic plan and world-class attributes across our business – including safety, efficiency and operational excellence – firmly position Martin Marietta for both further growth and shareholder value creation.”
The company also announced the appointment of Dorothy M. Ables to its board of directors. Ables will serve on the Audit Committee and brings significant financial and operational leadership experience to the board.
Most recently, she served as chief administrative officer of Spectra Energy Corp. She was responsible for information technology, human resources, support services and community relations.
Prior to that, she held roles as vice-president of audit services and as chief ethics and compliance officer for Spectra, and as senior vice president and chief financial officer for Duke Energy Gas Transmission.
“Over the last several years, the Nominating and Corporate Governance Committee has further diversified and strengthened our board, ensuring that we have the right mix of skills and experience to continue building on Martin Marietta’s long track record of success,” Nye said. “Dorothy is a well-known and highly regarded business person in Texas, which is a key market for Martin Marietta. We look forward to leveraging her deep knowledge of the State’s business and political environment, as well as the energy industry more broadly.”