Martin Marietta rolls on

Martin Marietta Materials announced financial results for the second quarter and six months ended June 30, 2006, reporting record net sales, net earnings and earnings per share. Stephen P. Zelnak, Jr., Chairman and CEO of Martin Marietta Materials, stated, “Pricing strength across the Aggregates segment led to record quarterly earnings. The heritage aggregates average selling price increased nearly 12% with price increases being strongest in the high-growth southern markets. A decline of 2% in heritage aggregates shipments partially offset pricing gains. The decline in shipments for the quarter was primarily weather driven with North Carolina experiencing one of the wettest Junes in recorded history. Rail and barge transportation issues also played a role in keeping shipments below expectations."

“Aggregates product line gross margin as a percentage of net sales increased 220 basis points during the quarter. Pricing gains, coupled with our continued focus on cost management, more than offset aggregates shipment declines, significantly higher costs related to energy, supplies and freight embedded in the Corporation’s long-haul transportation network, and higher-than-expected start-up costs for our major capacity expansion projects. Diesel fuel, natural gas and liquid asphalt costs used in aggregates and asphalt production increased nearly $9 million when compared with the prior year’s quarter."

“The outlook for the Aggregates segment for the remainder of 2006 is positive. We currently expect aggregates shipments volume to increase 2% to 4% and aggregates pricing to increase 11.5% to 13% for the year. We expect the Aggregates segment operating margin to increase approximately 300 basis points." Your comment?