QUOTE AND NEWS
Forbes  Nov 19  Comment 
As the saying goes, there are many possible reasons for an insider to sell a stock, but only one reason to buy -- they expect to make money.  So let's look at two noteworthy recent insider buys.
SeekingAlpha  Nov 17  Comment 
Market Intelligence Center  Oct 20  Comment 
After Friday’s trading in Martin Marietta Materials Inc. (MLM) the option-trade picking algorithms that power MarketIntelligenceCenter.com's Artificial Intelligence Center uncovered a trade that offers a 4.06% return, or 16.66% annualized (for...
Benzinga  Oct 9  Comment 
In a report published Thursday, Bank of America analyst Timna Tanners initiated coverage on Martin Marietta Materials (NYSE: MLM) with a Buy rating and $136.00 price target. In the report, Bank of America noted, “We initiate on Martin Marietta...
Market Intelligence Center  Oct 3  Comment 
For a hedged play on Martin Marietta Materials Inc. (MLM) MarketIntelligenceCenter.com’s patented trade-picking algorithms recommend the Nov. '14 $120.00 covered call for a net debit in the $117.43 area. That is also the break-even stock price...
Market Intelligence Center  Sep 26  Comment 
For a hedged play on Martin Marietta Materials Inc. (MLM) MarketIntelligenceCenter.com’s patented trade-picking algorithms recommend the Nov. '14 $130.00 covered call for a net debit in the $126.13 area. That is also the break-even stock price...
Market Intelligence Center  Aug 29  Comment 
After closing Thursday at $130.56, Martin Marietta Materials Inc. (MLM) presents an attractive opportunity to get a 2.96% return in just 50 days, which is an annualized return of 21.62% (for comparison purposes only). To enter this trade, sell one...




 

Martin Marietta Materials (NYSE: MLM) is a producer of aggregates for the infrastructure, agricultural, nonresidential, and residential construction.[1]The company also produces other chemicals used in industrial, agricultural, and environmental applications.[2] The company is segmented into the Mideast Group, Southeast Group, and West Group, collectively the Aggregates business, and the Specialty Products segment. As a producer of aggregates, the company's revenues depend on the construction industry.[3]


Business Growth

Martin earned $97 million on 2010 revenues of $1.78 billion, versus $85 million on 2009 revenues $1.70 billion.[4] Growth depends on residential construction activity, which has the potential of growth. In addition, the price increases also resulted in revenue growth.


Trends & Forces

Martin's revenues depend heavily on new construction starts, aggregate sales

A majority of Martin's aggregate products are used in the construction industry, so the company's results depend in part on the strength of the construction industry.[5] The housing slump beginning in 2007 has negatively affected Martin's business as new home construction dropped, reducing the number of residential homes to be built (and supplied with aggregates).[6] While private residential construction is a small market for MLM, the severe downturn in activity hurts business.[7] In general, the ongoing economic slowdown is leading lower levels of construction activity. A prolonged period of slow construction activity has the potential of significant curtailing Martin's growth.[8]


Energy Prices Makes Operation and Transport More Costly

Martin requires a continued supply of diesel fuel, natural gas, coal, petroleum coke and other forms of energy for production. Increasing energy costs, then, negatively affect the production of Martin's aggregates.[9] As a result, the price of oil and other energy sources have a significant impact of the company's margin.[10]

Competition

Competitors

Of the more than 3,800 aggregate companies in the United States, the company estimates that the five largest aggregates producers control control 31% of the market.[11]Due to transportation costs, competition in the aggregates industry is limited by a company's proximity to its production facilities. Some of the largest competitors are as follows:



References

  1. Reuters.com: Company Profile for Martin Marietta
  2. Reuters.com: Company Profile for Martin Marietta
  3. Reuters.com: Company Profile for Martin Marietta
  4. Morningstar Financials for Martin Marietta
  5. Martin Marietta 2010 Annual report
  6. Martin Marietta 2010 Annual report
  7. Martin Marietta 2010 Annual report
  8. Martin Marietta 2010 Annual report
  9. Martin Marietta 2010 Annual report
  10. Martin Marietta 2010 Annual report
  11. SEC, Martin Marietta Materials 10-K, pg. 10
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