August 3, 2011
Martin Marietta Materials, Inc. (MMM) announced results on Aug. 2 for the second quarter and six months ended June 30, 2011.
Ward Nye, president and CEO of Martin Marietta Materials, says in the MMM earnings report that “despite a continuing difficult operating environment,” he is pleased with the company’s performance.
“That we were able to increase prices and control costs is a credit to our operating teams and our disciplined approach to managing our business,” Nye says in a written statement about the earnings. “Specifically, in the quarter, aggregates pricing momentum continued with a 2.6% increase in the average selling price of our heritage aggregates product line. The quarter was, unfortunately, challenged by erratic weather as well as reduced spending on infrastructure projects. Therefore, as has been the case in the recent past, volumes were significantly lower, and that had an attendant negative effect on our operating profits. Our Specialty Products business continued its exceptional performance and established new quarterly records for both net sales and earnings from operations.”
NOTABLE ITEMS (ALL COMPARISONS, UNLESS NOTED, ARE WITH THE PRIOR-YEAR QUARTER)
— Earnings per diluted share of $0.78 compared with $1.18.
— Consolidated net sales of $426.7 million compared with $442.8 million.
— Heritage aggregates product line pricing up 2.6 percent.
— Heritage aggregates product line volume down 9.3 percent.
— Heritage aggregates product line direct production costs down 2.5%, despite a 13 percent increase in energy costs.
— Specialty Products record quarterly net sales of $49.6 million and earnings from operations of $19.3 million with a 380-basis-point improvement in operating margin (excluding freight and delivery revenues).
— Consolidated selling, general and administrative expenses down $1.9 million, or 20 basis points as a percentage of net sales.
— Consolidated earnings from operations of $63.0 million compared with $b90.7 million.
— Acquired an aggregates, asphalt and ready mixed concrete business in San Antonio.