The future for the aggregate market looks good.
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Commenting on the results, Stephen P. Zelnak, Jr., Chairman and CEO of Martin Marietta Materials, stated, ``Martin Marietta Materials achieved record sales and operating earnings during the first quarter 2000. Our heritage aggregates operations reported excellent performance with shipments increasing about 2%, coupled with a strong 4.6% increase in prices. Magnesia Specialties division's increased sales and earnings in the first quarter resulted from improving steel industry performance, continued strong chemicals sales, and a better balance between production and sales.
``During the quarter, Materials announced four separate transactions that added approximately 3.3 million tons of annual capacity to its aggregates business and 600,000 tons to its asphalt business. Acquisitions in Ohio, West Virginia, and two in Texas complement our continued expansion in these states. We are especially focused on further growth in Texas where, within a 16-month period, we have completed five acquisitions, plus the acquisition of our minority interest in our Meridian affiliate. Inclusive of Meridian, our shipments of aggregates in Texas are expected to approach 30-million tons in 2000, with our asphalt production slated to exceed 5.0 million tons. We are continuing to work a significant backlog of small acquisitions as we execute our expansion strategy.
``We are beginning to experience the impact of increased highway funding from the TEA-21 program. For example, a recently booked order for 1.1 million tons of aggregates for an Ohio Interstate Highway project should commence during the second quarter, and we expect further significant orders as the size of new projects increases. Under the original TEA-21 Act, Materials' production states expect a 55% increase in six-year annual public-works construction funding, which is significantly higher than the 44% funding increase reflected in the bill. To date, federal gas tax revenues are exceeding original estimates and the size of TEA-21 is increasing. Also during the quarter, Congress passed the Wendell H. Ford Aviation Investment and Reform Act of the 21st Century (''AIR-21``), which will increase airport construction spending by more than 60% over the next three years.''
Martin Marietta is the nation's second largest producer of construction aggregates and a leading producer of magnesia-based chemicals and refractories products used in a wide variety of industries. |
