Martin Marietta Materials released its second quarter 2017 results, which show a 4 percent increase in the company’s aggregate product line pricing and an 8 percent increase in cement volumes. According to the company, its consolidated net sales in the second quarter of 2017 increased 8.8 percent to $996.3 million, compared with $915.4 million in the second quarter of 2016.
In the second quarter of 2017, net sales for the company’s building materials business, which includes its aggregate, cement, ready-mixed concrete, and asphalt and paving product lines, were $931.7 million, an increase of 8.8 percent from $856.6 million in the second quarter of 2016. The 3.8 percent aggregate product line average selling price improvement was led by a 10.6 percent increase in the Southeast Group, Martin Marietta adds. In addition, the cement product line grew 5.2 percent, and ready-mixed concrete and asphalt pricing increased 1.4 percent and 11.1 percent, respectively.
Aggregate product line shipments increased 2 percent compared with the second quarter of 2016, the company says. This volume growth was led by a 3.6 percent increase in the West Group. Gross margin for the building materials business was 26.8 percent, an increase of 30 basis points.
In addition, shipments to the infrastructure market were relatively flat and comprised 41 percent of second-quarter aggregate product line volumes. The nonresidential market represented 32 percent of second-quarter aggregate product line shipments, and the residential market accounted for 20 percent of aggregate product line shipments.
“Our record second-quarter results reflect improved sales, gross profit and earnings from operations in each reportable group, underscoring the breadth of our business and our ability to capitalize on the ongoing recovery in construction activity,” says Ward Nye, president, chairman and CEO of Martin Marietta. “Positive residential and nonresidential activity drove results, along with pricing improvements across our aggregates product line, led by the Southeast Group’s 10.6 percent increase.”
In addition, the company forecasts that, compared to 2016 as a whole, the infrastructure market in 2017 will increase mid-single digits, the nonresidential market will increase in the low- to mid-single digits and the residential market will increase in the mid- to high-single digits. Total aggregate volumes in 2017 so far includes approximately 11.6 million internal tons, according to the company.
