Martin Marietta Materials, Inc. has published its results for 4Q14 and full-year 2014, highlights from which are provided below.
- Consolidated net sales increased by 59% in 4Q14 and by 38% in full-year 2014.
- Consolidated earnings from operations grew from US$62.8 million in 4Q13 to US$118.6 million in 4Q14.
- In full-year 2014, adjusted consolidated earnings from operations came in at US$368.7 million, up 70% on the US$218 million recorded in 2013.
- In 4Q14, acquired Texas Industries, Inc. (TXI) operations for all product lines generated US$238 million in net sales and achieved a gross profit and EBITDA of US$34 million and US$51 million, respectively. The acquisition of TXI was completed in July 2014.
- Martin Marietta’s cement segment recorded net sales of US$100 million, EBITDA of US$37.7 million and earnings from operations of US$22.5 million in 4Q14.
- The cement business’s performance was aided by continued strength in the Texas markets, an area in which demand currently outstrips local supply.
- As of 1 October 2014, the company increased the price of cement in the Texas and California markets by US$10/t.
- Around US$9.6 million went towards planned cement kiln maintenance work in 4Q14.
- According to Martin Marietta: ‘The cement group leadership, in collaboration with the company’s aggregates and ready mixed management, developed strategic plans regarding interplant efficiencies, as well as tactical plans addressing plant utilisation and efficiency, providing a road map for significantly improved profitability for 2015 and beyond’.
- The aggregates product line volume improved by 13.7% in 2014 and by 18.8% in 4Q14.
- The heritage aggregates product line shipments experienced growth across its markets in both geographical and end-use terms in 4Q14.
- The infrastructure market accounted for 44% of heritage aggregates shipments during the quarter, with volumes up 12%, and the ChemRock/Rail market accounted for 9%, with volumes increasing by 5%.
- Volumes to the non-residential market were up 4%, which accounted for 32% of shipments in 4Q14. The residential market accounted for 15%, with volumes improving by 5%.
- The company continued to integrate acquired aggregate operations into its heritage business.
- In 2014, the magnesia specialties business achieved record fourth quarter net sales of US$58.2 million. Earnings from operations were down slightly on the same period in 2013, falling from US$20.4 million to US$19.8 million.
- For the full year, net sales of US$236.1 million and earnings from operations of US$74.8 million were reported, both of which were annual records.
“2014 was a transformational year for Martin Marietta, and we are proud of the results we delivered, including a 77% increase in fourth-quarter net earnings over the prior-year quarter,” said Ward Nye, Chairman, President and CEO of Martin Marietta. “Further, TXI-related synergy realisation accelerated in the fourth quarter, making the transaction accretive for the year. These results further validate the successful execution of our strategic initiatives and the benefit of continuous focus on our core principles, including operational excellence and cost discipline. Our strong foundation, bolstered by the acquisition of Texas Industries, Inc. in July, has us well positioned to continue delivering increased shareholder value as we serve the rising demand for building materials.”
- The company’s cement business is expected to achieve net sales of US$475 – 500 million, and gross profit of US$120 – 130 million.
- Aggregate product line shipments are forecast to grow by 10 – 12%.
- Net sales of US$240 – 250 million and gross profit of US$85 – 90 million are projected for Martin Marietta’s magnesia specialties segment.
“We continue to focus on maximising the synergistic value of the TXI transaction,” added Nye. “To that end, we now expect to achieve annual synergies of US$100 million by the end of 2016, an increase of more than 40% compared with our previously announced target. Our 2015 plan assumes achievement of our targeted general and administrative synergies. As we continue the integration process, we remain committed to achieving world-class safety standards and increasing shareholder value.”
The full results can be found here.
Adapted from press release by Louise Fordham
Read the article online at: https://www.worldcement.com/the-americas/11022015/martin-marietta-materials-4q14-results-317/