Martin Marietta Specialty Products Sets Records

Martin Marietta Materials Inc of Raleigh, NC reports that its Specialty Products segment generated a fourth quarter operating profit of US$15.8 million on net sales of US$50.6 million compared with US$16.3 million on sales of US$51.5 million. The segment’s sales of magnesia-based chemicals in the quarter were down 6% at US$35.0 million and sales of dolomitic lime were 11% higher at US$15.3 million. For the full year, Specialty Products established new records for net sales and earnings from operations, which were US$202.2 million and US$68.5 million, increases of 1% and 3% respectively over 2011. The segment’s sales of magnesia-based chemicals increased from US$142.6 million to US$142.9 million and sales of dolomitic lime increased from US$56.6 million to US$57.6 million. On November 1, 2012, the segment’s new dolomitic lime kiln at Woodville, OH became operational and contributed US$3 million of net sales for the fourth quarter. On an annual basis the kiln is expected to generate sales of US$22 million to US$25 million. Martin Marietta’s reports that its Aggregates business, including asphalt, ready-mix concrete, and road paving, generated net sales of US$407.3 million in the fourth quarter of 2012, a 26% increase over the same period of 2011. The company’’s aggregates sales volume increased 5.4%, to 31.6 million tons, and average pricing decreased from US$10.36/ton to US$10.32/ton. For the full year, the Aggregates business generated net sales of US$1.64 billion compared with US$1.52 billion in 2011. The business shipped 128.3 million tons up from 125.1 million tons in 2011. The average sales price increased from US$10.24/ton to US$10.33/ton. Ward Nye, Martin Marietta’s CEO, stated, “We were pleased that 2012 concluded the same way it started – with growth in both heritage aggregates product line shipments and average selling prices. Notably, heritage volume growth in the fourth quarter was achieved in each of our reportable groups, leading to an overall increase of 5.0%. Underlying this improvement was expansion in our non-residential and residential end-use markets, continuing trends we have experienced throughout the year.” Vulcan Materials Co of Birmingham, AL has reported 2012 aggregate sales of US$1.58 billion, down slightly from US$1.59 billion in 2011. A 2% increases in average unit sales price, to US$10.44/ton, offset a 1.5% decrease in volume sales to 141 million tons. Don James, Vulcan’s CEO, said, “Demand for aggregates in our markets is expected to grow by mid-single digits in 2013. Aggregates demand from residential construction is expected to increase double-digits while demand from private non-residential buildings is expected to increase high single-digits versus 2012. Our current expectation for growth in aggregates demand into public construction, including highways and other infrastructure, is limited given the lead time required from award of contract to the start of construction. Our full year shipments in 2013 are expected to increase from 1-5% with most of the expected year-over-year growth to occur in the second half of the year, due in part to favorable weather in the first quarter of 2012.” Vulcan has also announced the completion of asset sale transactions that generated gross proceeds of US$149 million. The transactions include the sale of reclaimed and excess land in California, one small quarry in rural Virginia, and a percentage of future production at four aggregate quarries in South Carolina.

Volume 27 issue 4

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