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Martin Marietta Materials
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P.O. Box 30013 News Release
Raleigh, North Carolina 27622
Telephone: (919) 781-4550
FOR IMMEDIATE RELEASE Contact: Janice K. Henry
Vice President,
Chief Financial Officer
and Treasurer
(919) 783-4658
MARTIN MARIETTA MATERIALS
ANNOUNCES RECORD QUARTER
RALEIGH, North Carolina (October 21, 1996) - Martin Marietta Materials, Inc.
(NYSE:MLM) today reported financial results for the third quarter and nine
months ended September 30, 1996. Sales for the quarter increased 5% to $201.5
million from 1995 third quarter sales of $191.1 million. Net earnings for the
quarter increased 17% to $27.5 million, or $0.60 per share, from 1995 third
quarter net earnings of $23.4 million, or $0.51 per share.
Sales for the first nine months of 1996 increased 8% to $538.5 million
from $497.0 million for the year-earlier period. For the nine-month period ended
September 30, 1996, net earnings increased 14% to $58.6 million, or $1.27 per
share, from net earnings for the first nine months of 1995 of $51.6 million, or
$1.12 per share.
The Aggregates division's sales increased 6% to $169.5 million for the
third quarter, compared with the year-earlier period, while the division's
earnings from operations for the quarter were $40.5 million, an increase of 18%
from the prior-year period. Unusually wet weather conditions in the Southeast,
primarily as a result of Hurricane Fran, adversely affected both shipments and
production and resulted in the temporary shutdown of certain locations. Sales of
$440.8 million and operating earnings of $83.7 million for the nine months ended
September 30, 1996, exceeded the prior-year period by 9%.
Magnesia Specialties' third quarter sales of $32.0 million were
slightly above third quarter sales in 1995, while the division's operating
earnings of $2.5 million were 3% below the prior-year period as a result of the
impact of an explosion and fire in an electrical substation, which occurred at
the Woodville, Ohio, lime plant during the second quarter. For the nine-month
period, sales were $97.7 million and earnings from operations were $7.8 million,
an increase of 4% and 33%, respectively, over the prior-year period.
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Commenting on the results, Stephen P. Zelnak, Jr., Vice Chairman,
President and Chief Executive Officer, said, "We continue to experience the
benefits from our acquisitions as well as from continued growth in the areas
where we do business. Weather has had a negative impact on shipments and cost of
operations throughout the year. However, despite severe cold during the first
quarter and the effects of Hurricane Fran on our North Carolina quarries and the
subsequent wet weather conditions in the third quarter, shipments reached a
record level for the quarter and are up 7.5% for the year to date.
"At our Magnesia Specialties division, we continue to see growth in the
MagChem(R) product line as a result of our emphasis on increasing sales in areas
with higher margins. Management expects the division to realize record sales in
this product area for 1996 and continued improvement in 1997. The costs
associated with the explosion at our lime plant affected second and third
quarter earnings; however, repairs were completed in the third quarter and a
claim has been filed under our business interruption insurance policy."
Martin Marietta Materials, Inc., is the nation's second largest
producer of construction aggregates and a leading producer of magnesia-based
chemical and refractory products used in a wide variety of industries.
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MARTIN MARIETTA MATERIALS, INC.
Unaudited Statement of Earnings
(In millions, except per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
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1996 1995 1996 1995
---- ---- ---- ----
Net sales $ 201.5 $ 191.1 $ 538.5 $ 497.0
Cost of sales 142.9 139.3 400.8 369.9
-------- ------- -------- --------
Gross profit 58.6 51.8 137.7 127.1
Selling, general and
administrative expense 15.1 14.3 44.8 43.1
Research and development 0.5 0.5 1.4 1.4
-------- ------- -------- --------
Earnings from operations 43.0 37.0 91.5 82.6
Interest expense (2.3) (2.5) (8.0) (7.0)
Other income and
expenses, net 0.9 1.8 5.2 4.4
-------- ------- -------- --------
Earnings before taxes on
income 41.6 36.3 88.7 80.0
Taxes on income 14.1 12.9 30.1 28.4
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Net earnings $ 27.5 $ 23.4 $ 58.6 $ 51.6
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Net earnings per common share
$ 0.60 $ 0.51 $ 1.27 $ 1.12
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Average number of shares
outstanding 46.1 46.1 46.1 46.1
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MARTIN MARIETTA MATERIALS, INC.
Unaudited Financial Highlights
(In millions)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------- ----------------
1996 1995 1996 1995
---- ---- ---- ----
Net sales:
Aggregates $ 169.5 $ 159.2 $ 440.8 $ 403.1
Magnesia Specialties 32.0 31.9 97.7 93.9
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Total $ 201.5 $ 191.1 $ 538.5 $ 497.0
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Gross profit:
Aggregates $ 51.4 $ 44.0 $ 115.8 $ 105.6
Magnesia Specialties 7.2 7.8 21.9 21.5
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Total $ 58.6 $ 51.8 $ 137.7 $ 127.1
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Earnings from operations:
Aggregates $ 40.5 $ 34.4 $ 83.7 $ 76.8
Magnesia Specialties 2.5 2.6 7.8 5.8
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Total $ 43.0 $ 37.0 $ 91.5 $ 82.6
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MARTIN MARIETTA MATERIALS, INC.
Balance Sheet Data
(In millions)
September 30, December 31,
1996 1995
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(Unaudited)
ASSETS
Cash $ 2.4 $ -
Accounts receivable, net 133.6 94.8
Affiliates receivable 6.1 89.7
Inventories 113.1 113.4
Other current assets 14.0 16.5
Property, plant & equipment, net 396.5 392.2
Other noncurrent assets 22.9 21.6
Intangible assets 62.0 61.2
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Total assets $ 750.6 $ 789.4
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LIABILITIES & SHAREHOLDERS' EQUITY
Current liabilities $ 86.2 $ 173.3
Long-term debt (excluding
current maturities) 124.8 125.0
Pension, postretirement &
postemployment benefits 52.1 47.5
Other noncurrent liabilities 21.0 20.1
Shareholders' equity 466.5 423.5
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Total liabilities and shareholders' equity $ 750.6 $ 789.4
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