Martin Marietta sets record revenues in 3Q21

Martin Marietta Materials Inc reported results for the third quarter ended 30 September 2021, achieving record consolidated products and services revenues of US$1.463bn, versus US$1.241bn in 2020.

The building materials business produced record products and services revenues of US$1,390.8m, a 17.3 per cent increase, and record product gross profit of US$413.1m, a 7.9 per cent rise. 

Cement shipments increased 4.1 per cent, benefitting from robust construction activity throughout the Texas Triangle and improving demand for specialty oil-well cement products. Pricing grew 8.4 per cent or 6.6 per cent on a mix-adjusted basis, reflecting periodic price increases. Cement product gross margin declined 250 basis points to 37.7 per cent as higher energy and raw materials costs outpaced shipment and pricing gains.

Third-quarter aggregates shipments, including shipments from acquired operations, grew 10.2 per cent. Acquired operations have selling prices below the company’s average, which limited pricing growth to 1.2 per cent. On an organic basis, aggregates shipments increased six per cent while pricing increased by 2.2 per cent.

Ready-mixed concrete shipments by advanced 23.2 per cent, or 20.5 per cent organically, reflecting the healthy Texas and Colorado demand environment. Pricing was up 2.3 per cent following the implementation of mid-year price increases in Texas. Product gross margin expanded modestly to 9.8 per cent, as volume and pricing growth overcame higher raw material and diesel costs.

Total asphalt shipments increased 115.9 per cent as incremental volume from the acquired Minnesota operations more than offset Colorado shipment declines resulting from late-summer liquid asphalt shortages that the company says have since been resolved. 

Ward Nye, chairman and CEO of Martin Marietta, stated, “Our overall confidence is augmented by our newly-completed acquisition of Lehigh Hanson, Inc’s West Region business, which further enhanced our pipeline of growth opportunities and deep bench of talent at Martin Marietta. This SOAR-aligned, strategic transaction provides attractive new growth platforms for Martin Marietta’s continued geographic expansion, especially in key California and Arizona regions, where we are poised to benefit from favourable market dynamics and accelerating public and private construction activity.”