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RALEIGH, N.C. (AP) — Martin Marietta Materials Inc. said Tuesday that its third-quarter net income rose 28 percent, helped by contributions from acquisitions and the modest residential construction recovery.
For the quarter ended Sept. 30, the Raleigh, N.C.-based building materials company earned $62.9 million, or $1.36 per share, up from $49.2 million, or $1.07 per share, in the same quarter last year.
Revenue increased by 18 percent to $593.9 million.
The results beat Wall Street predictions. Analysts, on average, expected a profit of $1.26 per share on $569.4 million in revenue, according to FactSet.
Prices of heritage aggregates — such as granite, limestone, sand and gravel —rose 4.1 percent, while sales volumes fell 3.8 percent. Shipments of the products to the infrastructure market, which accounts for more than half of the company's heritage aggregates sales volumes, fell 6 percent. Shipments to the residential construction market increased by 14 percent.
The company said that the drop in infrastructure shipments was partly a result of a delay in the passage of a federal highway bill that prompted many states to put off infrastructure spending and delayed some projects into 2013.
Recent acquisitions contributed $92 million to the recent quarter's sales.
For the full year the company expects shipments of heritage aggregates products to rise 1 to 2 percent and for pricing to increase by 2 to 4 percent.
Martin Marietta shares rose $4.21, or 5 percent, to $89.22 in midday trading.