Martin Marietta Materials expects aggregates prices to improve by some 8%

Martin Marietta Materials, with a full year’s contribution from Texas Industries (TXI) increased turnover by 28.2 per cent to US$2695m in the first nine months of the calendar year while EBITDA advanced by 54.7 per cent to US$542m.

The trading profit rose by 74.3 per cent to US$342.1m and the net interest charge rose by 27.6 per cent to US$57.4m. The pre-tax profit advanced by 94.2 per cent to US$291.3m and with the tax charge rising by a more modest 43.6 per cent, the net profit more than doubled from US$90.4m to US$205.7m.

The aggregates turnover increased by 24.3 per cent to US$2003.3m, or 80.5 per cent of the total, with central and south Texas being notably strong markets. Underlying ready-mixed concrete volumes were 19 per cent higher and the average selling price rose by 9 per cent while turnover emerged 12.8 per cent ahead at US$165.7m. Asphalt turnover declined by 7.8 per cent to US$55.3m and road paving was up by 3.5 per cent to US$117.3m.

Aggregates production in the period was 2.2 per cent higher on a comparable basis at 96.68m tonnes (106.57m short tons), but on an actual basis there was a 0.6 per cent reduction from the at 97.48m tonnes (107.46m short tons) disclosed a year ago. The actual tonnage was 8.9 per cent ahead at 107.43m tonnes (118.42m short tons). The average price received in the original business ahead up by 7.0 per cent to US$12.98 per tonne (US$11.78 per short ton). The group's Mid-America region accounted for 47.8 per cent of the aggregates sold, or 46.26m tonnes, which was 5.9 per cent higher than a year earlier, with prices improving by 4.6 per cent. The West region sold 37.02m tonnes, or 38.3 per cent of the total, a 3.3 per cent decline, with average price improving by 10.5 per cent. The company's south-eastern operations, finally, registered a 6.0 per cent volume improvement to 13.4Mt and the average price rose by 4.6 per cent.

The cement business, which came with Texas Industries, was consolidated only for six months last year, contributed a turnover of US$307.5m and a profit of US$37.5m. 3.41Mt (3.75Mst) of cement were sold and the average price was ahead by 13.4 per cent up at US$107.45/t (US$97.48/st). A total of 17.5 per cent of the cement volume was used within the group, with 82.5 per cent going to external customers.