RALEIGH — Martin Marietta Materials (MLM) on Thursday reported first-quarter earnings of $121.4 million. And its CEO gave a lengthy state of the business report.
Ward Nye, Chairman and CEO of Martin Marietta, explained:
- “Our year is off to a remarkable start with record first-quarter results by nearly every measure including continued world-class safety incidence rates. The cumulative effects of our 2022 and January 1, 2023 pricing actions drove robust margin expansion despite continued inflationary pressure and modestly lower aggregates shipments. Importantly, we achieved a quarterly record for aggregates pricing growth and a 134 percent increase in aggregates gross profit per ton, highlighting our team’s steadfast execution of our value-over-volume commercial strategy.
- “We continue to see solid near-term product demand reinforced by healthy customer backlogs across our coast-to-coast footprint, led by infrastructure and heavy nonresidential projects of scale. We expect recent legislation and the resulting enhanced level of public investment in these kinds of aggregates-intensive end-use projects to support continued strong demand for several years to come. While single-family residential construction has slowed, builder sentiment has improved in Martin Marietta geographies as the single-family housing shortage continues to drive a base level of demand in our key Sun Belt markets. We also expect to see an uptick in residential activity as mortgage rates stabilize over the next several months.
- “We are confident in our ability to continue to expand margins throughout the year and expect to deliver compelling full-year financial results more directionally in line with the high end of our previously announced 2023 guidance range, which we will revisit at mid-year. Moreover, Martin Marietta’s track record of success throughout various business cycles proves the resiliency and durability of our aggregates-led business model and our ability to successfully navigate a wide array of macroeconomic environments to consistently deliver superior value for shareholders.”
The Raleigh-based company said it had net income of $1.95 per share. Earnings, adjusted to account for discontinued operations, were $2.16 per share.
The results topped Wall Street expectations. The average estimate of nine analysts surveyed by Zacks Investment Research was for earnings of 99 cents per share.
The seller of granite, limestone, sand and gravel posted revenue of $1.35 billion in the period, which also beat Street forecasts. Six analysts surveyed by Zacks expected $1.19 billion.
Martin Marietta expects full-year revenue in the range of $6.6 billion to $6.82 billion.