Strong first quarter for aggregate producers
Two of the nation’s largest aggregate producers reported strong revenue growth in the first quarter, ending March 31.
Martin Marietta reported record results for the first quarter with consolidated net sales totalling $734 million, up from $631.9 million in the first quarter of 2015. Aggregates volume was 29,633 t (32,665 st), up from 26,160 t (28,836 st) in the first quarter of 2015.
Vulcan Materials Co. said it’s first-quarter results reflect continued strong revenue growth and margin expansion. Total revenues increased $123 million, or 20 percent, to $755 million. Gross profit increased $87 million, or 112 percent, to $165 million.
Vulcan Materials’ chairman and chief executive officer Tom Hill, said, "The recovery in construction activity continues across most of our markets and our strong first quarter volume growth – along with the growth we’ve seen over the past several quarters – reflects that sustained strengthening in demand. Several factors contributed to the above-trend volume growth seen in the first quarter, including relatively favorable weather conditions in certain of our markets, our customers’ success in winning and executing new project work, incremental improvements in public construction spending, and an additional shipping day in the quarter due to Leap Year.
"Our local leadership teams continue to capitalize on the recovery in demand for our products, serving our customers well and doing so efficiently and safely," Hill said. "As a result of their efforts and our improving business fundamentals, we currently project full-year adjusted EBITDA at or near the high-end of our guidance range and supported by 8 to 9 percent growth in full year aggregates shipments over 2015."
Martin Marietta’s chairman, president and chief executive officer said of the first quarter, “"We are especially pleased to report a record first quarter even as we are only in the early-stage of recovery in broadly-based construction activity. Our ability to perform so well without the benefit of consistent macroeconomic support reflects positively on Martin Marietta’s disciplined execution against our strategic priorities. Our results also are indicative of our strict adherence to maintaining a relentless strategic and tactical focus on our leading operating positions in economically-diverse, high-growth geographies, and improving market conditions throughout the vast majority of our business. First-quarter results were supported by several years of slow, but steady job growth, and evident in the double-digit aggregates product line volume growth, strong price increases and improved profitability of both our aggregates-related downstream businesses and cement business. Our year-over-year comparisons further underscore the continued steady economic recovery in our business, much of which was masked in 2015 by historic levels of rainfall.”
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