Martin Marietta Materials reported third-quarter earnings Tuesday morning that missed Wall Street estimates on profitability despite recording a 53 percent increase in net sales in the third quarter thanks to its recent acquisition of Texas Industries.
Excluding one-time expenses, the company posted earnings per share of $1.45, compared with 1.54 cents per share in the third quarter of 2013. The consensus among Wall Street analysts who cover the company was $1.696 per share, according to Bloomberg.
Martin Marietta shares were down about 3 percent in early trading Tuesday.
Revenue totaled $1.004 billion, up from $665.3 million during the same period last year and above the $974 million forecast by analysts. Net sales were a record $917.9 million, up from $600.5 million.
Martin Marietta produces rock, gravel and other materials used to build roads, subdivisions and commercial buildings. The company shipped 2.7 percent more materials in the third quarter than it did during the same period in 2013.
The Texas Industries acquisition added $274 million to the company’s net sales in the third quarter. The deal also gave Martin Marietta a leading position in the cement market in Texas, and the amount of cement shipped in the third quarter increased 13 percent compared to the same period last year.
“Job growth continues as a significant catalyst for construction activity, and Texas leads the nation in employment games,” Martin Marietta CEO Ward Nye said in a statement. He added that Texas Department of Transportation continues to invest in multiyear construction projects.
Martin Marietta gained about 2,000 additional employees as part of its Texas Industries acquisition, bringing the company’s total headcount to about 7,000. The deal made Martin Marietta the largest provider of rock, gravel and other construction materials in the country.
The company now expects that the benefits from the acquisition will exceed the $70 million in savings it originally forecast by 2017.