Martin Marietta boosted by TXI acquisition

Martin Marietta boosted by TXI acquisition
Published: 29 October 2014


Martin Marietta Materials, with a three-month contribution from Texas Industries (TX)I, increased turnover by 30.5 per cent to US$2101.6m in the first nine months of the calendar year, while EBITDA almost doubled by rising by 99.2 per cent to US$565.4m.

The trading profit rose by 26.5 per cent to US$196.3m and the net interest charge was 10.8 per cent higher at US$45m.  Pre-tax profit advanced by 31.1 per cent to US$150m, but the tax charge just over doubled. This left the net profit  6.7 per cent ahead at US$90.4m.

Net debt at the end of September stood at US$1569m. With a near-trebling of the equity, the gearing level fell from 70 per cent a year ago to 35.9 per cent. Gross capital investment in the period was 35.4 per cent higher at US$138.6m.   

The aggregates turnover increased by 14.6 per cent to US$1164.7m, or 79.1 per cent of the total, with Texas and Colorado being notably strong markets. Ready-mixed concrete sales were significantly boosted by the acquisition of Texas Industries and its over 100 batching plants and jumped from US$103.4m to US$274.2m, but even the heritage business recorded a 42.1 per cent increase. Asphalt turnover improved by 14.9 per cent to US$60m and road paving edged ahead by 0.8 per cent to US$113.3m.

Aggregates production in the period was 10.8 per cent higher at 97.48Mt (107.46Mst) and the average price received in the original business ahead up by 3.5 per cent. The group's Mid-America region area accounted for 46.2 per cent of the aggregates sold, or 43.68Mt, which was 1.6 per cent higher than a year earlier, with prices improving by 3.7per cent. The West region sold 38.29Mt, or 40.5 per cent of the total, a 15.5 per cent advance, with average price improving by 3.8 per cent. The company's southeastern operations, finally, registered a 6.6 per cent volume improvement to 12.64Mt and the average price rose by 6.1per cent.  

The cement business, which came with Texas Industries, was consolidated only from the beginning of July, contributed a turnover of US$109.5m and a profit of US$18.3m. A total of 1.38Mt (1.53Mst) of cement were sold, an increase of 16.1 per cent on the TXI volume a year earlier and the average price was 8.2 per cent up at US$112.15/t (US$85.95/st). Some 16.6 per cent of the cement volume was used within the group, with 83.4 per cent going to external customers.

The special products division, which primarily produces magnesia-based chemicals and dolomitic lime, increased turnover in the period by 6.1 per cent to US$177.9m, while the profit contribution was 3.6 per cent ahead at US$55m.