Martin Marietta Q2 Profit Up 40%

Aug. 3, 2010 - Martin Marietta Materials Inc.'s (MLM) second-quarter profit jumped 40%, beating expectations, on improved shipments.
The company produces construction aggregates used to build infrastructures and makes refractory and lime products for the steel industry. President and Chief Executive Ward Nye said that despite the continuing challenging economic environment, Martin Marietta reported 9% aggregates volume growth, and the heritage-aggregate product line saw its first increase in four years.
Overall shipments rose 10% in the second quarter after a 26% drop a year earlier, but prices decreased 4% amid market volatility.
Demand had been particularly weak from Martin Marietta's commercial-construction segment, where there were few signs of recovery. The company said Tuesday it expected volumes in the sector to fall 12% to 14% this year but rise for infrastructure and residential construction.
Martin Marietta reported a profit of $54.4 million, or $1.18 a share, up from $38.9 million, or 85 cents a share, a year earlier. Revenue increased 8% to $504.6 million. Analysts polled by Thomson Reuters most recently estimated earnings of $1.17 and $507 million in revenue.
Gross margin fell to 23.3% from 24%.