Martin Marietta Materials Inc. (MLM) On Strong 4th Quarter Results
Shares of Raleigh, North Carolina, based Martin Marietta Materials Inc. rose on Tuesday, against the backdrop of a strong day in stocks across the board. Martin Marietta Materials stock was up sharply, rising 15.17%, or $18.18 per share, to close at $137.24, on volume of 3,942,387 shares. The company reported that its net income from the forth quarter of 2014 was up significantly from the same quarter of 2013.
On Tuesday, the company reported that net income for the forth quarter (ended December 31) came in at $64 million, which represents a 77% increase over the net income of $36 million for same period a year earlier. Earnings per diluted share came in at $.94 per share, compared with analysts expectations of $.85 per share, and $.77 per share a year earlier. For the full year, net income was $155.6 million, compared to $121.3 million in 2013.
Revenues for the 4th quarter came in at $779.5 million, compared to $491.4 million for the same period a year earlier - an increase of 59%. For the full year, revenues reached $2.68 billion, representing a 38% increase over the $1.94 billion for all of 2013.
The company's cement business is benefiting from continued strength in the Texas markets. Current cement demand in Texas exceeds local supply, and the Portland Cement Association (PCA) forecasts continued supply/demand imbalance over the next several years.
"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 realization 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. ("TXI") in July, has us well positioned to continue delivering increased shareholder value as we serve the rising demand for building materials. "
The company also announced that it has authorized a new share repurchase program under which the company may acquire up to 20 million shares of its outstanding common stock. This represents approximately 30% of the company's 67.3 million outstanding shares as of December 31.
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