Martin Marietta Materials’ improves prices in spite of some weak markets

Martin Marietta Materials saw turnover advance by 3.8 per cent in 2017 to US$3965.6m and EBITDA was 3.4 per cent ahead at US$1004.4m, with the final quarter showing a 14.2 per cent advance. The trading profit improved by 3.4 per cent to US$700.4m while interest charge increased by 12 per cent 91.5m, giving a pretax profit two per cent ahead at US$618.9m. Thanks to a tax credit, the net attributable profit it improved by 67.7 per cent to US$713.3m.  

Martin Marietta's aggregates production eased by 0.6 per cent in 2017 to 143.06Mt (157.70Mst) while the average price received by Martin Marietta in the period was 4.5 per cent higher. 

Volumes in the company's southeastern area, the smallest but the strongest in the past year, increased by 5.6 per cent to 18.53Mt and prices rose by an average 8.7 per cent. The area, which includes Florida and Alabama, represented just 13 per cent of the group aggregates volume. In the western region, which includes Texas, Oklahoma, Arkansas and Iowa, the aggregates volume declined by 2.2 per cent to 58.72Mt, or 41 per cent of the group total while the price was 1.7 per cent better. The mideastern area sold 0.7 per cent less aggregates at 65.81Mt and the turnover was 3.6 per cent higher to account for 46 per cent of the total as the average price improved by five per cent. The aggregates turnover advanced by 3.3 per cent to US$2341.5m. 

Ready-mixed concrete deliveries improved by 0.8 per cent to 6,544Mm³ and the average sales price improved by 2.9 per cent to US$140.31/t, with the turnover advancing by 3.7 per cent to US$937m. The asphalt volume improved by 4.3 per cent to 2.98Mt (3.29Mst), while the average price rose by 10.7 per cent to US$47.85/t(US$43.41/st) as the lower oil price recovered. Asphalt and paving generated a turnover 13.5 per cent higher at US$297m. 

The cement business generated a turnover 1.9 per cent higher at US$371.5m from the sale of 3.17Mt (3.47Mst) of cement, but the profit contribution declined by 2.4 per cent to US$117.3m. The average price achieved was US$116.81/t(US$105.97/st).

The Magnesia Specialities operations generated a turnover 5.1 per cent higher at US$270m and the trading profit eased by 0.1 per cent to US$79.9m. Turnover is expected to be stable, or marginally, lower in 2018.  

For the current year, Martin Marietta Materials is expecting a turnover in the region of US$4250m, which would imply a 7.2 per cent increase and is suggesting an EBITDA of around 12.5 per cent. The aggregates volume is expected to be around five per cent higher, with the cement turnover growing by around 15 per cent.