Martin Marietta Q3 2011 results: Net sales up 4.6 percent, earnings down
Martin Marietta Materials Inc. announced results for the third quarter and nine months ended Sept. 30, 2011.
Ward Nye, president and CEO of Martin Marietta Materials, stated: “During the third quarter, we continued to build on a foundation that has enabled us to outperform others in the industry as we all work through the prolonged economic downturn. Our disciplined business approach is once again evident in our operating results, which reflect aggregates product line pricing growth and continued cost control.
“Further, our Specialty Products business generated a new quarterly record for net sales and a third-quarter record for earnings from operations. We also continue to distinguish ourselves through the prudent deployment of capital in the completion of strategic acquisitions that enhance our aggregates business, capacity expansion projects in our profitable Specialty Products business and sustained dividends throughout the economic cycle. Business development initiatives have been structured to grow or augment our positions in markets with attractive growth dynamics while maintaining our balance sheet strength and financial flexibility. The continued successful execution of these operating and business development strategies and initiatives will provide long-term shareholder value.”
NOTABLE ITEMS (ALL COMPARISONS, UNLESS NOTED, ARE WITH THE PRIOR-YEAR QUARTER)
– Earnings per diluted share of $1.07 and adjusted EPS of $1.11 (that excluded a $0.04 per diluted share to reflect a non-recurring early retirement benefit) compared with $1.13
– Consolidated net sales of $464.0 million, up 4.6 percent
– Heritage aggregates product line pricing up 2.8 percent
– Heritage aggregates product line volume down 2.2 percent
– Heritage aggregates product line direct production costs down slightly, despite a 16 percent increase in energy costs
– Specialty Products net sales of $50.4 million and earnings from operations of $15.6 million, resulting in a 240-basis-point improvement in operating margin (excluding freight and delivery revenues)
– Consolidated selling, general and administrative expenses up $2.3 million, resulting from a $2.8 million nonrecurring early retirement benefit
– Consolidated earnings from operations of $79.0 million compared with $83.9 million