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Martin Marietta Materials Annual Report, Year Ended Dec 31, 2004

Filing Date
Filed February 25, 2005
Period End
December 31, 2004
Security
MLM
In the record · 2016–202610-K1210-Q328-K141

MLM filed 12 annual reports (10-K), 32 quarterly reports (10-Q) and 141 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Jun ’17Jun ’17
  2. Leadership change8-K · Jul ’19Jul ’19
  3. Material agreement8-K · Dec ’21Dec ’21
  4. Material agreement8-K · Dec ’25Dec ’25

01—Abstract

Summary

Summary of the 10-K filed February 25, 2005. Cited figures are marked; the original filing is the authoritative source.

Martin Marietta Materials, Inc. describes itself as the United States' second largest producer of aggregates for construction, with a Specialty Products segment (magnesia-based chemicals, dolomitic lime, and structural composite products).

In 2004 the Aggregates segment accounted for 93% of net sales. The Aggregates division shipped 191.5 million tons, generating net sales and earnings from operations of $1.4 billiona and $220 million, respectively. Total 2004 net sales were $1.55 billion, with total revenues of $1.76 billion, earnings from operations of $226.6 million, and net earnings of $129.2 million, or $2.66 per diluted share, compared with $93.6 million in 2003.

Gross margin rose to 22.1% from 21.0%, and management attributes the improvement to pricing gains, productivity initiatives, and divestitures of nonstrategic assets. The company remained active in portfolio reshaping during 2004, divesting nonstrategic aggregates and asphalt operations and forming a joint venture with Hunt Midwest Enterprises effective January 1, 2005, to operate Kansas City-area aggregates facilities. Operating cash flow was $266.8 millionb, capital expenditures for property, plant and equipment were $163.4 million, and the company repurchased $71.5 million of common stock in cash-flow terms.

Management's 2005 outlook projects aggregates shipments up 2% to 4% and aggregates pricing up 3% to 4%, with 2005 net earnings expected at $2.85 to $3.20c per diluted share. The filing flags risks tied to construction cycles, federal highway funding (the TEA-21 successor bill remained pending), weather and hurricanes, rail and water transportation dependence, and the Structural Composite Products business, which the company says is approximately six months behind plan in commercialization and incurred a $10.7 million operating loss in 2004.

02—Key points

Key Highlights

  1. 2004 net earnings were $129.2 million, or $2.66 per diluted share, up from $93.6 million in 2003.
  2. Net sales were $1.55 billion; total revenues were $1.76 billion, including $208.3 million of freight and delivery revenues.
  3. Gross profit was $342.2 million, with gross margin of 22.1% versus 21.0% in 2003.
  4. Aggregates shipments totaled 191.5 million tons across 32 states, Canada, and the Bahamas, with 308 quarries and distribution yards.
  5. Operating cash flow was $266.8 million; capital expenditures were $163.4 million, and 2005 spending is expected to approximate $195.0 million.
  6. Stock repurchases totaled $71.5 million in 2004 (1,522,200 shares), and dividends declared were $0.76 per share.
  7. 2005 outlook projects net earnings of $2.85 to $3.20 per diluted share, with aggregates pricing up 3% to 4%.

03—Questions

Frequently Asked Questions

  1. How did Martin Marietta's profitability change in 2004?

    Net earnings rose to $129.2 million, or $2.66 per diluted share, from $93.6 million in 2003. Earnings from operations increased to $226.6 million from $195.5 million, and the filing attributes the gross margin improvement to pricing, productivity and plant modernization, and divestitures of nonstrategic assets.

  2. How much of the company's business comes from aggregates?

    The Aggregates segment accounted for 93% of 2004 total net sales and generated $1.4 billion in net sales and $220 million in earnings from operations. The Specialty Products segment accounted for the remaining 7%.

  3. What is the outlook for 2005?

    Management expects aggregates shipments to rise 2% to 4% and aggregates pricing to rise 3% to 4%. Magnesia Specialties is expected to earn $18 million to $20 million pretax, and 2005 net earnings are projected at $2.85 to $3.20 per diluted share.

  4. What are the main risks flagged in the filing?

    Key risks include cyclical construction spending, uncertainty over the successor federal highway bill (TEA-21 expired September 30, 2003), weather and hurricane exposure in the Southeast and Gulf Coast, dependence on rail and water transportation, and the Structural Composite Products business, which is about six months behind plan in commercialization.

  5. What corporate transactions occurred around the filing date?

    The company formed a 50/50 joint venture with Hunt Midwest Enterprises, effective January 1, 2005, to operate substantially all Kansas City-area aggregates facilities, contributing 15 active quarries with about 7.5 million tons of annual production. The company also continued divesting nonstrategic assets during 2004 and repurchased 200,000 shares in January 2005.

04—Continue

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