Flooding in Texas and North Carolina slammed construction materials producer Martin Marietta Materials, reducing third-quarter sales below analyst expectations and forcing the Raleigh company to lower its financial forecast for the year.
Nevertheless, bad weather wasn’t enough to stop Martin Marietta from reporting record third-quarter sales and profit. Total sales for the quarter were above $1 billion, up 3.3 percent year-over-year. The company posted $240.4 million in earnings from operations, an increase of 33.9 percent, and earnings per diluted share of $2.49, up 43.1 percent.
Martin Marietta CEO Ward Nye told Wall Street analysts in a conference call that the company had “an exceptional record-breaking performance.”
Investors agreed, driving up the share price by $7.50 to close at $192.88 Tuesday, an increase of 4 percent.
“When it comes to aggregates and cement, we believe volume disruptions are temporary,” wrote Morningstar analyst Kristoffer Inton in a research note Tuesday. “A construction project still requires the materials for completion, even if their procurement is delayed.”
Martin Marietta produces rock, gravel, cement and other materials used to build roads, houses and commercial buildings. The company employs about 8,000 people, including about 1,000 in North Carolina.