Martin Marietta reports strong Q1 profit advance

Martin Marietta reports strong Q1 profit advance
Published: 06 May 2016


Martin Marietta Materials, one of the top five US aggregates producers, has announced a first-quarter turnover 16.2 per cent ahead at US$734.0m and EBITDA rose by 67.3 per cent to US$152.6m. The trading profit was more than trebled, rising from US$.25.6m to US$83.8m and after a net interest charge that was 3.6 per cent higher at US$20m and after other items, the pretax profit emerged at US$64.8m compared with just US$5.4m and the net attributable profit jumped from US$6.1m to US$45m. Capital expenditure is estimated by the company at some US$350m for the year and the interest charge at US$80m.  

Aggregates production rose by 13.3 per cent to 29.63Mt (32.3Mst), while the average price received was 8.1 per cent higher at US$13.04/st. The mideastern area sold 11.72Mt, or 39.7 per cent of the total, a 27.8 per cent increase. The southeastern region saw deliveries improve by 5.6 per cent to 3.92Mt. In the western region, which represented 46.8 per cent of the heritage volume, shipments advanced by 4.4 per cent to 13.86Mt, while recent additions produced 0.15Mt or 0.4 per cent of the total. For the full year, Martin Marietta Materials is looking for heritage aggregates volumes to improve by between 6-8 per cent with prices also improving by between 6-8 per cent.

The asphalt tonnage fell by 50.4 per cent to 0.12Mt while the price eased by 1.8 per cent while ready-mixed concrete deliveries grew by 29.3 per cent to 1.35Mm³. Cement shipments in the Texas business advanced by 3.8 per cent to 0.87Mt (0.98Mst), helped by strong Texan demand, and accounted for 24.6 per cent of the trading profit. The special products division, which produces mainly speciality chemicals and dolomitic lime, saw turnover improve by 1.2 per cent to US$59.5m, while the trading profit advanced by 15.7 per cent to US$20.6m.