Martin Marietta posts improved 3Q results
Martin Marietta Materials Inc posted total revenues of US$1994.1m in the 3Q23, up 10.1 per cent YoY from US$1811.7m. Gross profit improved 38.6 per cent YoY to US$676m in the 3Q23 from US$487.8m. Net earnings from continuing operations saw a 47.8 per cent YoY increase to US$430.3m from US$291.2m in the year-ago period while adjusted EBITDA improved 32.2 per cent YoY to US$705.2m from US$533.1m.
Martin Marietta’s Building Materials business generated record revenues of US$1.9bn, up 10.5 per cent YoY in the 3Q23.
Cement shipments of 1.1Mt in the 3Q23 were stable while pricing increased 18.9 per cent as sold-out conditions continue to drive robust pricing levels. Cement gross profit was up 61.5 per cent to a record US$108.7m.
Aggregates shipments in the 3Q23 were down 7.3 per cent YoY due to softer demand in the Midwest and Southwest markets, only partially offset by continued strength in the Southeast markets. Prices improved 20 per cent due to price rises at the start of and mid-year 2023. Aggregates gross profit advanced 32.1 per cent to record of US$440.6m as improved prices offset lower volumes and higher costs.
Ready-mixed concrete revenues were up 25.3 per cent YoY to US$285.2m while gross profit increased 81.8 per cent to US$34.1m.
Asphalt and paving revenues advanced 14.6 per cent YoY to a record US$359.9m in the 3Q23. Gross profit was up by a third to US$66.1m as lower natural gas and liquid asphalt costs augmented pricing growth.
Revenues of the Magnesia Specialties business were flat at US$75.5min the 3Q23 as softer demand for chemical products was offset by strong pricing improvement in chemicals and lime product lines. Gross profit improved 3.6 per cent YoY to US$21.4m.
Ward Nye, chairman and CEO of Martin Marietta, said, “Our outstanding year-to-date results, despite reduced product shipments, underscore the durability of our business, the vitality of our chosen geographies, the efficacy of our value-over-volume market approach, as well as our ability to adapt to the challenges inherent in the current volatile macroeconomic and geopolitical environment. With robust, multi-year demand from infrastructure and U.S.-based manufacturing, coupled with an attractive commercial environment, Martin Marietta is well-positioned to deliver compelling results and superior shareholder value for the foreseeable future.
”The results for the quarter and through nine months underscore our confidence that Martin Marietta will continue to outperform in the near-, medium- and long-term as we benefit from our business-mix portfolio and carefully curated coast-to-coast footprint. Specifically, we see increased investment in large infrastructure and manufacturing projects across the United States. These positive trends provide an attractive counter-balance to the slowing in warehouses, private light nonresidential and residential construction, which have been impacted by tightening credit conditions. Notably however, the single-family residential sector, remains fundamentally underbuilt, particularly in key Martin Marietta Sun Belt markets. As such, we fully expect demand in these end markets to accelerate when inflation moderates and restrictive monetary policy eases.”
