Martin Marietta Materials reports double-digit 3Q growth

Martin Marietta Materials’ nine-month turnover improved by 7.6 per cent to US$3224m and increased turnover by 12.1 per cent to US$1219.6m in the third quarter of 2018. EBITDA advanced by 15.1 per cent to US$349m. The trading profit only improved by six per cent to US$240.7m, the net attributable profit rose by 18.9 per cent to US$180.2m.

The aggregates turnover increased by 9.8 per cent to US$1778.1m in the first nine months, while the third quarter showed a 16.5 per cent advance to US$687.8m, or 53.5 per cent of the group total. The ready-mixed concrete volumes were 5.5 per cent ahead while the average selling price advanced by 2.7 per cent. Turnover emerged 6.5 per cent ahead at US$720.4m. Asphalt volume declined by seven per cent to 2Mt (2.22Mst), while the third quarter showed a 9.1 per cent reduction to 1Mt (1.1Mst), with all the decline coming in internal sales, with the external volume being marginally ahead. 

Aggregates production in the period was ahead by 7.4 per cent to 116.72Mt (128.66Mst) with the third-quarter volumes being 14.9 per cent higher at 45.65Mt (50.32Mst). The average price received in the aggregates business, including internal sales, was ahead by 2.3 per cent to US$14.99/t (US$13.60/st). The infrastructure market in the year-to-date took some 39 per cent of aggregates shipments in the third quarter, with non-residential new building market, accounting for 33 per cent and the housebuilding market for 20 per cent.

The group's Mid-America region accounted for 43.1 per cent of the aggregates sold, or 50.31Mt, which was 1.5 per cent higher than a year earlier, with prices improving by 4.5 per cent. The West region sold 44.62Mt, or 38.2 per cent of the total, a 0.9 per cent reduction, reflecting continued poor weather conditions, with average price advancing by 2.4 per cent. The company's southeastern operations registered a 0.7 per cent volume reduction to 14.03Mt while the average price improved by 1.7 per cent, with recent acquisitions representing the remaining 3.2 per cent of the volume sold.

The cement business contributed a turnover 6.9 per cent ahead at US$300.6m and the gross profit improved by 11.4 per cent to US$97.6m. In the period, 2.48Mt (2.73Mst) of cement were sold and the average price was ahead by 3.5 per cent to US$120.06/t (US$108.92/st). A total of 35.3 per cent of the cement volume was used within the group, compared with 33.9 per cent a year earlier. 

The special products division, which primarily produces magnesia-based chemicals and dolomitic lime, saw turnover in the period improve by 6.5 per cent to US$215.7m, but the profit contribution recovered by 11.6 per cent to US$73.5m.