Rock Products

MAR 2013

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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IN THE KNOW Martin Marietta Reports Growth in 2012 PRODUCER NEWS For full���year 2012, versus full���year 2011, the company reported: n Adjusted earnings per diluted share (excluding business development expenses of $0.46 and $0.25 per diluted share in 2012 and 2011, respectively) of $2.29 compared with $2.03. n Earnings per diluted share of $1.83 compared with $1.78. n Net sales of $1.839 billion compared with $1.520 billion. n Heritage aggregates product line volume up 2.9 percent; pricing up 2.5 percent. n Specialty Products record net sales of $202.2 million and record earnings from operations of $68.5 million compared with $200.6 million and $66.3 million, respectively. n SG&A expenses down 70 basis points as a percentage of net sales. ���We were pleased that 2012 concluded the same way it started ��� with growth in both heritage aggregates product line shipments and average selling price,��� said Ward Nye, president and CEO of Martin Marietta Materials, stated. ���Notably, heritage volume growth in the fourth quarter was achieved in each of our reportable groups, leading to an overall increase of 5.0 percent. Underlying this im��� provement was expansion in our nonresidential and resi��� dential end���use markets, continuing trends we have experienced throughout the year. Our Colorado operations acquired in December 2011 also provided an important contribution to the quarter. Additionally, we see tangible signs that the infrastructure end���use market is poised to benefit from the Moving Ahead for Progress in the 21st 12 ROCKproducts ��� MARCH 2013 Century Act, or MAP���21, as well as other federal��� and state��� sponsored funding initiatives. Our 2012 results and trends, coupled with external indicators, have provided optimism that our momentum will continue in 2013.��� FAST FACT Martin Marietta Materials Inc. announced results for the fourth quarter and year ended Dec. 31, 2012. For the fourth quarter of 2012, versus fourth quarter 2011, the company reported: n Earnings per diluted share of $0.46 compared with $0.32. n Consolidated net sales of $457.9 million compared with $374.7 million. n Heritage aggregates product line volume increased 5.0 percent; pricing increased 1.0 percent. n Specialty Products net sales of $50.6 million and earnings from operations of $15.8 million. n Consolidated selling, general and administrative expenses (SG&A) decreased 20 basis points as a percentage of net sales despite absorbing a $3.3 million charge for restructuring initiatives. n Consolidated earnings from operations of $40.0 million compared with $20.7 million; 2011 results included $15.1 million of business development expenses. Martin Marietta Materials reported that last year heritage aggregates product line volume increased 5.0 percent and pricing increased 1.0 percent. ���Heritage aggregates product line volume growth reflects a 13 percent increase in shipments in both the nonresi��� dential and residential end���use markets. The nonresiden��� tial market is our second largest aggregates product line end use, comprising 31 percent of quarterly shipments. Volume growth was notable in the energy sector, as well as the commercial construction sector, which we believe is beginning to benefit from six consecutive quarters of improvement in the residential end���use market. Gener��� ally, growth in the commercial component of nonresiden��� tial construction follows the residential construction market with a 12��� to 18���month lag.��� Nye said. ���The infrastructure market represents approximately half of our aggregates product line volumes and inNye creased 1.5 percent for the quarter,��� Nye continued. ���We were encouraged by the 91 percent increase in highway obligations during the quarter compared with the prior-year period. While the rate of improvement will moderate as the fiscal year progresses, we believe this is an early indicator for increased infrastructure construction activity in 2013. We also continue to monitor applications for funding provided by the Transportation Infrastructure Finance and Innovation Act (TIFIA), which provides $1.75 billion of federal credit assistance over the next two years for nationally or regionally significant surface transportation projects.

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