2018 Shipments and Pricing Improved for Aggregates, Cement and Ready Mixed Concrete
Magnesia Specialties Business Posted Record Revenues and Profitability
Growth in Company’s Top Ten States Expected to Outperform the Nation in 2019; Guidance Reaffirmed for Mid-Single-Digit Growth in 2019 Aggregates Shipments and Pricing
RALEIGH, N.C. (February 12, 2019) – Martin Marietta Materials, Inc. (NYSE:MLM) today reported results for the fourth quarter and year ended December 31, 2018.
MOREWard Nye, Chairman, President and CEO of Martin Marietta, stated, “Our industry-leading safety and record financial performance in 2018 can be best summarized as challenges faced and challenges met. We produced record results for the seventh consecutive year and concluded 2018 with the best heritage safety performance in our Company’s history. These accomplishments demonstrate our commitment to operational excellence and the successful execution of our strategic plan. Full-year revenues increased 7 percent to a record $4.2 billion and adjusted EBITDA (Earnings Before Interest, Taxes, and Depreciation and Amortization) increased 9 percent to an all-time high of $1.1 billion, driven by a modest improvement in heritage Building Materials shipments, solid pricing gains and value-enhancing acquisitions. We also delivered record net earnings and earnings per diluted share (after adjusting for the one-time benefit in 2017 of the 2017 Tax Act on earnings metrics) for the full year.
"Even more noteworthy, we extended our lengthy history of record performance without meaningful shipment growth from our heritage Building Materials business. Weather, contractor capacity and logistics disruptions challenged both our Company and the industry throughout the year, resulting in aggregates volumes, on a comparable basis, that remained only modestly above 2010 trough levels. Our proven ability to successfully manage short-term external disruptions makes us highly optimistic about our business and ability to achieve both continued profitability growth and shareholder value creation in 2019 and beyond.
"Looking ahead, we expect 2019 to be another record year for Martin Marietta. The fundamentals of our business and underlying demand trends remain strong across our geographic footprint. We believe the combination of continued private-sector strength and the long-awaited arrival of increased public-sector activity in our key geographies will drive shipment, pricing and profitability growth in 2019. Leading employment and population growth across the Sunbelt should continue to bolster private-sector construction activity. Further, after a decade of underinvestment, infrastructure activity is poised for meaningful growth as evidenced by an acceleration in public lettings and contract awards in our key states of Texas, Colorado, North Carolina, Georgia and Florida. These trends, combined with an improved pricing outlook, underscore the strength of our markets and the near-term growth trajectory of our business.”
TO READ THE ENTIRE RELEASE, CLICK HERE