Martin Marietta Materials, Inc. (MLM) has reported 35.74 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $159.50 million, or $2.49 a share in the quarter, compared with $117.50 million, or $1.74 a share for the same period last year.
Revenue during the quarter went up marginally by 2.01 percent to $1,103.90 million from $1,082.20 million in the previous year period. Gross margin for the quarter expanded 225 basis points over the previous year period to 26.51 percent. Total expenses were 78.22 percent of quarterly revenues, down from 83.41 percent for the same period last year. This has led to an improvement of 519 basis points in operating margin to 21.78 percent.
Operating income for the quarter was $240.40 million, compared with $179.50 million in the previous year period.
Ward Nye, chairman, President and chief executive officer of Martin Marietta, stated: "Our ability to take advantage of a slow and steady economic expansion and improvement across our markets helped us achieve exceptional performance in each of our business units. For the third quarter of 2016, we delivered significant margin expansion and achieved record gross profit, net earnings and earnings per diluted share from our record net sales for the period."
For fiscal year 2016, Martin Marietta Materials forecasts revenue to be in the range of $3,500 million to $3,700 million.
Operating cash flow improves significantly
Martin Marietta Materials, Inc. has generated cash of $414.10 million from operating activities during the nine month period, up 29.57 percent or $94.50 million, when compared with the last year period.
The company has spent $454.70 million cash to meet investing activities during the nine month period as against cash inflow of $200.50 million in the last year period
The company has spent $67.10 million cash to carry out financing activities during the nine month period as against cash outgo of $192.40 million in the last year period.
Cash and cash equivalents stood at $60.70 million as on Sep. 30, 2016, down 86.09 percent or $375.70 million from $436.40 million on Sep. 30, 2015.
Debt moves up
Martin Marietta Materials, Inc. has witnessed an increase in total debt over the last one year. It stood at $1,764.80 million as on Sep. 30, 2016, up 6.74 percent or $111.50 million from $1,653.30 million on Sep. 30, 2015. Total debt was 23.94 percent of total assets as on Sep. 30, 2016, compared with 22.23 percent on Sep. 30, 2015. Debt to equity ratio was at 0.42 as on Sep. 30, 2016, up from 0.39 as on Sep. 30, 2015. Interest coverage ratio improved to 11.67 for the quarter from 9.50 for the same period last year.
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