By Will Feuer
Martin Marietta Materials posted higher sales in the third quarter, boosted by price increases and robust demand for cement and other construction aggregates.
The maker of building materials on Wednesday reported a profit from continuing operations of $430.3 million, or $6.94 a share, compared with $291.2 million, or $4.67 a share, in the same period a year ago. Analysts surveyed by FactSet expected earnings of $6.05 a share.
Revenue rose 10% to $1.99 billion, matching analysts’ expectations.
Third-quarter aggregates shipments fell 7.3%, but pricing rose 20% due to increases implemented at the start and middle of the year. Cement shipments were roughly flat while pricing increased 19%, lifted by what the company described as “largely sold-out conditions.”
Chief Executive Ward Nye said the company is seeing increased investments in large infrastructure and manufacturing projects across the U.S. That is offsetting softness in warehouses and private light nonresidential and residential construction.
“Notably however, the single-family residential sector, remains fundamentally underbuilt, particularly in key Martin Marietta Sun Belt markets,” he said. “As such, we fully expect demand in these end markets to accelerate when inflation moderates and restrictive monetary policy eases.”
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