Feb. 8, 2011 - Martin Marietta Materials Inc. (MLM) swung to a fourth-quarter profit on higher volume in its aggregates business and wider margins.
Martin Marietta produces construction aggregates used to build infrastructure and makes refractory and lime products for the steel industry. The company had struggled last year with falling margins.
But President and Chief Executive Ward Nye said the company's results from October and November validated its recent strategy of relying on volume recovery and lean operating costs to boost margins without increasing prices.
Martin Marietta posted a fourth-quarter profit of $14.8 million, or 32 cents a share, compared with a prior-year loss of $3.2 million, or 7 cents a share, a year earlier. Discontinued operations added a penny a share to the latest quarter's earnings and took off 2 cents a share the previous year.
Revenue rose 14% to $428 million.
Analysts had most recently forecast earnings of 20 cents on $395 million in revenue.
Gross margin widened to 16.5% from 15.9%.
Sales in the company's aggregates business, its largest by revenue, rose 12% as operating earnings more than tripled. The company's smaller specialty products segment posted a 17% revenue boost and a 9.4% increase in profit. Both end-use markets posted double-digit shipment increases.
The company refrained from giving complete guidance for future earnings, citing uncertainty over the rate at which states will spend stimulus funds this year. It generally based predictions on McGraw-Hill Construction's published view.
Martin Marietta produces construction aggregates used to build infrastructure and makes refractory and lime products for the steel industry. The company had struggled last year with falling margins.
But President and Chief Executive Ward Nye said the company's results from October and November validated its recent strategy of relying on volume recovery and lean operating costs to boost margins without increasing prices.
Martin Marietta posted a fourth-quarter profit of $14.8 million, or 32 cents a share, compared with a prior-year loss of $3.2 million, or 7 cents a share, a year earlier. Discontinued operations added a penny a share to the latest quarter's earnings and took off 2 cents a share the previous year.
Revenue rose 14% to $428 million.
Analysts had most recently forecast earnings of 20 cents on $395 million in revenue.
Gross margin widened to 16.5% from 15.9%.
Sales in the company's aggregates business, its largest by revenue, rose 12% as operating earnings more than tripled. The company's smaller specialty products segment posted a 17% revenue boost and a 9.4% increase in profit. Both end-use markets posted double-digit shipment increases.
The company refrained from giving complete guidance for future earnings, citing uncertainty over the rate at which states will spend stimulus funds this year. It generally based predictions on McGraw-Hill Construction's published view.
