Martin Marietta Materials (MLM) has reported 6 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $42.30 million, or $0.67 a share in the quarter, compared with $45 million, or $0.69 a share for the same period last year.
Revenue during the quarter grew 6.99 percent to $843.90 million from $788.80 million in the previous year period. Gross margin for the quarter contracted 99 basis points over the previous year period to 17.43 percent. Total expenses were 90.85 percent of quarterly revenues, up from 89.10 percent for the same period last year. That has resulted in a contraction of 175 basis points in operating margin to 9.15 percent.
Operating income for the quarter was $77.20 million, compared with $86 million in the previous year period.
Ward Nye, chairman, president and chief executive officer of Martin Marietta, stated, "Our strong first-quarter results mark a solid beginning to a very promising year. The vibrant construction environment for our infrastructure, non-residential and residential markets is encouraging. We are optimistic about the remainder of 2017 and beyond as we see increased momentum across almost our entire geographic footprint, aided by the ongoing, durable economic recovery and employment growth.
Martin Marietta Materials expects revenue to be in the range of $3,750 million to $3,950 million for financial year 2017.
Operating cash flow improvesMartin Marietta Materials has generated cash of $74 million from operating activities during the quarter, up 8.35 percent or $5.70 million, when compared with the last year period. The company has spent $101.50 million cash to meet investing activities during the quarter as against cash outgo of $210.40 million in the last year period.
Cash flow from financing activities was $32.90 million for the quarter, up 3,555.56 percent or $32 million, when compared with the last year period.
Cash and cash equivalents stood at $55.40 million as on Mar. 31, 2017, up 103.68 percent or $28.20 million from $27.20 million on Mar. 31, 2016.
Debt moves upMartin Marietta Materials has witnessed an increase in total debt over the last one year. It stood at $1,846.20 million as on Mar. 31, 2017, up 5.33 percent or $93.50 million from $1,752.70 million on Mar. 31, 2016. Total debt was 24.97 percent of total assets as on Mar. 31, 2017, compared with 24.83 percent on Mar. 31, 2016. Debt to equity ratio was almost stable at 0.45 as on Mar. 31, 2017, when compared with the last year. Interest coverage ratio deteriorated to 3.69 for the quarter from 4.30 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
