QUOTE AND NEWS
Market Intelligence Center  May 14  Comment 
MarketIntelligenceCenter.com's patented trade-picking algorithms have identified an attractive covered-call trade on Martin Marietta Materials Inc. (MLM). Look at the Jul. '15 $150.00 covered call for a net debit in the $146.67 area. This trade...
Benzinga  May 13  Comment 
Susquehanna upgraded Martin Marietta Materials, Inc. (NYSE: MLM) from Neutral to Positive. Martin Marietta Materials shares have gained 26.72 percent over the past 52 weeks, while the S&P 500 index has surged 11.15 percent in the same...
Market Intelligence Center  May 8  Comment 
MarketIntelligenceCenter.com's patented trade-picking algorithms have identified an attractive covered-call trade on Martin Marietta Materials Inc. (MLM). Look at the Jul. '15 $150.00 covered call for a net debit in the $144.68 area. This trade...
Market Intelligence Center  May 7  Comment 
The patented option-trade picking algorithms that power MarketIntelligenceCenter.com's Artificial Intelligence Center have selected a covered-call trade on Martin Marietta Materials Inc. (MLM) that includes 5.23% downside protection. Sell one...
Wall Street Journal  Apr 30  Comment 
Martin Marietta Materials reported its first profit in the first quarter since 2008, as high demand in Texas allowed it to enact double-digit price increases in its aggregates product line.
Market Intelligence Center  Apr 28  Comment 
The patented option-trade picking algorithms that power MarketIntelligenceCenter.com's Artificial Intelligence Center have selected a covered-call trade on Martin Marietta Materials Inc. (MLM) that includes 4.78% downside protection. Sell one...
Market Intelligence Center  Apr 22  Comment 
After closing Tuesday at $138.37, Martin Marietta Materials Inc. (MLM) presents an attractive opportunity to get a 3.79% return in just 86 days, which is an annualized return of 16.09% (for comparison purposes only). To enter this trade, sell one...
Market Intelligence Center  Mar 31  Comment 
After closing Monday at $142.84, Martin Marietta Materials Inc. (MLM) presents an attractive opportunity to get a 4.45% return in just 108 days, which is an annualized return of 15.03% (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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