Martin Marietta Materials achieves record volumes and profits

US-based Martin Marietta Materials saw turnover advance by seven per cent in 2018 to US$4244.3m. EBITDA was 8.6 per cent ahead at US$1103.8m, but the final quarter showed a 5.9 per cent decline. The trading profit eased by 1.4 per cent to US$690.7m, while interest charge increased by 49.8 per cent 137.1m, giving a pretax profit 6.9 per cent lower at US$576.1m. A tax charge compared with a credit in the previous year gave a net attributable profit 34.1 per cent lower at US$470m.

The company's cement business generated a turnover 6.7 per cent lower at US$420m from the sale of 3.18Mt (3.51Mst) of cement, but the profit contribution declined by 11.2 per cent to US$104.2m. The average price achieved was US$120.57/t (US$109.38/st).

Martin Marietta's aggregates production improved by 8.3 per cent in 2018 to 154.98Mt (170.80Mst) while the average price received by Martin Marietta in the period was 1.9 per cent higher, or three per cent on an underlying basis. 

Volumes in the company's southeastern area, the smallest and also the weakest in the past year, declined by 1.3 per cent to 18.29Mt and prices rose by an average three per cent. That area, which includes Florida and Alabama, represented just 11.8 per cent of the group aggregates volume. In the western region, which includes Texas, Oklahoma, Arkansas and Iowa, the aggregates volume eased by one per cent to 58.15Mt, or 37.5 per cent of the group total while the price was two per cent better. The mideastern area sold 1.5 per cent more aggregates at 66.81Mt and the turnover was 1.6 per cent higher to account for 43.1 per cent of the total as the average price improved by 3.8 per cent. The aggregates turnover declined by 2.7 per cent to US$2540.2m, with 7.6 per cent having come from new acquisitions.

Ready-mixed concrete deliveries improved by 1.5 per cent to 6641Mm³ and the average sales price improved by 1.5 per cent to US$142.41/t. The asphalt volume declined by 10.9 per cent to 2.66Mt (2.93Mst), while the average price rose by 2.7 per cent to US$49.14/t (US$44.60/st). Ready-mixed concrete and asphalt generated a turnover 5.3 per cent lower at US$1240m. 

The Magnesia Specialities operations generated a turnover 10.7 per cent higher at US$287.7m and the trading profit improved by 10.9 per cent to US$88m. Turnover is expected to be stable, or slightly higher, in 2019.

For the current year, Martin Marietta Materials is expecting a turnover in the region of US$4580m, which would imply a 7.9 per cent increase and is suggesting EBITDA of around US$1225m. The aggregates volume is expected to be around seven per cent higher, with the cement turnover growing by around five per cent.