Rock Products

MAR 2017

Rock Products is the aggregates industry's leading source for market analysis and technology solutions, delivering critical content focusing on aggregates-processing equipment; operational efficiencies; management best practices; comprehensive market

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Page 8 of 107 ROCK products • March 2017 • 7 below the prior year. Price increases in California and Illinois partially offset the revenue impact of lower ship- ments. Average selling prices for these two states were more than 10 percent above the prior year. For the year, shipments rose 2 per- cent over the prior year, with this gain coming despite double-digit shipment declines in California, Illinois and Texas. For the year, shipments in the company's other markets grew 10 per- cent on average. Trailing 12-month construction start activity, both public and private, has steadily improved since July. This improvement has helped reverse year-over-year declines from May to October, which negatively impacted shipments in the second half of the year. The backlog of construction proj- ects in development continues to grow as well. In addition, state and local gov- ernments continue to pass measures to increase public infrastructure invest- ment. While the company believes conditions remain in place for a sus- tained, multi-year recovery in demand for aggregates, quarter-to-quarter trends may vary significantly. For the fourth quarter, freight-adjusted average sales price for aggregates increased 5 percent, or $0.60 per ton, versus the prior year. Pricing was negatively impacted by product and geographic mix in the fourth quarter. Excluding this effect, overall pricing increased 7 percent. Full-year pricing increased 7 percent, with virtually all of the company's mar- kets realizing higher pricing versus the prior year. The overall pricing climate remains favorable as visibility to a sustained recovery improves and as construction materials producers stay focused on earning adequate returns on capital. Regarding the company's earnings outlook for 2017, Chairman and Chief Executive Officer Tom Hill stated, "The strong fundamentals of our aggregates-focused business and the outstanding improvement in our core profitability have led to strong earn- ings growth during the last three years of recovery. In 2017, we expect contin- ued growth across the vast majority of our markets and across each of the end use segments we serve. Our expecta- tion for full year Adjusted EBITDA of $1.125 to $1.225 billion is driven by a continuing recovery in shipments, with higher levels of publicly funded construction activity just beginning to join the ongoing recovery in private demand, as well as a favorable pricing environment." Martin Marietta Materials Inc. reported record results for the fourth quarter and full year 2016. For the fourth quar- ter of 2016, Martin Marietta achieved net sales of $889.0 million compared with $780.8 million in the 2015 fourth quarter; EBITDA was $229.7 million compared with $204.4 million; and earnings per diluted share were $1.55 compared with $1.26. For the full year, net sales were $3.58 billion compared with $3.27 billion in 2015; EBITDA was $971.6 million com- pared with $750.7 million; and earnings per diluted share were $6.63 compared with $4.29, up nearly 55 percent. Martin Marietta Materials Reports Record Results FAST FACT Company achieved net sales of $889.0 million compared with $780.8 million in the 2015 fourth quarter.

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