Martin Marietta Loss Narrows, Beats Estimate; Stock Up - Update

(RTTNews) - Construction materials maker Martin Marietta Materials Inc (MLM) said Tuesday its net loss for the first quarter narrowed from a year ago, helped mainly by higher sales at its aggregates business, partly offset by acquisition-related charges. Sales for the quarter improved to easily top Wall Street estimates.

Looking ahead to fiscal year 2014, the company expects aggregates product line shipments to increase 4 percent to 5 percent, adding that private construction continues to be strong across all its geographies.

Shares of Martin Marietta were up about 5.5 percent in afternoon trade on the New York Stock Exchange.

Raleigh, North Carolina-based Martin Marietta posted a first-quarter net loss of $21.6 million or $0.47 per share, compared with a loss of $27.8 million or $0.61 per share a year ago.

Results for the quarter include a $0.12 per share charge for business development expenses related to the proposed combination with Texas Industries Inc.

Excluding items, adjusted loss for the quarter was $0.35 per share.

On average, 12 analysts polled by Thomson Reuters projected a loss of $0.34 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for the quarter were $428.7 million, compared with $383.9 million a year ago. Analysts projected sales of $409.45 million for the quarter.

Strength was mainly seen at aggregates business, where product line shipments increased 8 percent.

Consolidated gross margin (excluding freight and delivery revenues) for the quarter was up 310 basis points at 6.8 percent.

In January, Martin Marietta Materials agreed to acquire smaller peer Texas Industries Inc (TXI) for about $2.7 billion in a move to create a market leading supplier of aggregates and heavy building materials.

Martin Marietta stock closed Tuesday at $123.26, up $6.37 or 5.45%, on a volume of about 698k shares.