Martin Marietta Materials, Inc. Reports Third-Quarter Results

  Martin Marietta Materials, Inc. Reports Third-Quarter Results

          Company Delivers Double-Digit Revenue and Earnings Growth
 Earnings Per Diluted Share of $1.54, Up 13%; Consolidated Net Sales Increase
                                     12%
       Aggregates Volume and Pricing Growth in All Reportable Segments
  Specialty Products Posts Third-Quarter Record Net Sales and Earnings from
                                  Operations

Business Wire

RALEIGH, N.C. -- November 7, 2013

Martin Marietta Materials, Inc. (NYSE:MLM) today announced its results for the
third quarter and nine months ended September 30, 2013.

Ward Nye, President and CEO of Martin Marietta Materials, stated: “We are
pleased to report a double-digit increase in both revenues and earnings in the
third quarter of 2013. Our performance was driven largely by the ongoing
recovery in private-sector construction activity, as well as solid execution
of our long-term strategic plans and diligent management of our cost
structure. I am especially proud of the fact that our Company achieved these
strong results despite the continued public-sector construction headwinds. The
combination of a 12% increase in consolidated net sales over the prior-year
quarter and our ongoing focus on controlling costs resulted in a 13% increase
in earnings per diluted share. These results reflect new third-quarter records
for both net sales and earnings from operations in the Specialty Products
business, as well as volume and pricing growth in the aggregates product
line.”

The Aggregates business experienced volume and pricing increases from all
reportable segments and pricing growth in all product lines. An 8.1% increase
in aggregates product line shipments led to increased operating leverage, as
illustrated by a 220-basis-point improvement in the Aggregates business’
operating margin (excluding freight and delivery revenues). The Specialty
Products business benefitted from strong dolomitic lime sales, including the
capacity expansion from the recently completed kiln in Ohio, which led to a
13% increase in the segment’s net sales.

“We are encouraged by significant improvements in our markets and believe, as
do most third-party forecasters, that significant upside potential remains in
both the residential and nonresidential construction segments. Additionally,
our Aggregates business will benefit from the current boom in shale gas
production, as well as planned follow-on development. We are confident that
these trends bode especially well for our business,” Nye said.

Notable Items (all comparisons, unless noted, are versus the prior-year third
quarter)

  *Earnings per diluted share of $1.54 compared with $1.36
  *Record consolidated net sales of $600.5 million compared with $537.5
    million
  *Aggregates product line volume up 8.1%; aggregates product line pricing up
    2.3%
  *Consolidated gross margin (excluding freight and delivery revenues) of
    23.8%, up 70 basis points
  *Specialty Products third-quarter record net sales of $55.8 million and
    earnings from operations of $17.3 million
  *Consolidated selling, general and administrative (“SG&A”) expenses of
    $37.1 million, or 6.2% of net sales
  *Consolidated earnings from operations of $108.8 million compared with
    $91.5 million
  *Acquired and successfully integrated three aggregates quarries in Atlanta,
    Georgia

MANAGEMENT COMMENTARY (ALL COMPARISONS, UNLESS NOTED, ARE VERSUS THE
PRIOR-YEAR THIRD QUARTER)

Nye continued, “Each of the Aggregates business’ reportable segments posted
aggregates product line volume growth, led by an 8.1% increase in the
Mid-America Group. Consistent with trends noted earlier in the year,
private-sector construction generated this growth. The nonresidential market,
which comprised 30% of third-quarter aggregates shipments, increased 19% and
growth was notable in both commercial construction and the energy sector. The
residential market achieved volume growth of 15% and accounted for 13% of our
quarterly shipments. Housing permits and starts, key indicators for
residential construction activity, continue to have strong year-over-year
improvement, which should help sustain the recovery in this market. The
ChemRock/Rail market, 11% of aggregates volumes, reported higher ballast
shipments and increased 13% over the prior-year quarter.

“Shipments to the infrastructure end-use market, which represented the
remaining 46% of our aggregates product line business, were essentially flat
with the prior-year quarter. Federal budget and deficit disputes and the
uncertainty over future highway funding levels beyond the September 2014
expiration of the Moving Ahead for Progress in the 21^st Century Act, or
MAP-21, have contributed to the reluctance of many states and municipalities
to commit to large-scale projects. Additionally, while awards under the
Transportation Infrastructure Finance and Innovation Act (TIFIA) component of
MAP-21 have the ability to leverage up to $50 billion in financing for
transportation projects of either national or regional significance, they
continue to move at a slower pace versus earlier expectations with only two
projects being awarded. While we still expect TIFIA to benefit several of our
major markets – namely Texas, North Carolina and Florida – we do not expect
any meaningful impact before the second half of 2014, and more notably in
2015.

“Despite federal-level funding delays and concerns, we are encouraged by
states’ recognition of the importance of sustained infrastructure investment.
We have seen year-over-year growth in highway contract awards and construction
employment in several of our key states, including Texas, Georgia, Colorado
and Virginia. In Georgia, three regions in the southern part of the state
began collecting a special-purpose local option sales tax on January 1, 2013.
These monies are earmarked for transportation improvements, and we expect the
pace of projects funded by this tax to accelerate as we move into 2014.
Additionally, we anticipate a significant reconstruction effort in Colorado as
a result of the recent flooding. We are well-positioned to work with the local
Colorado communities to repair and/or replace hundreds of miles of washed-out
roads and the significant number of destroyed homes, businesses and bridges.

“Pricing momentum in the Aggregates business continued with each of our
product lines reporting growth. Importantly, for the third quarter in a row,
each of our reportable segments achieved pricing improvement in the aggregates
product line, enabling us to achieve an overall increase of 2.3%. Our
vertically integrated businesses also achieved pricing growth, with the ready
mixed concrete and asphalt product lines reporting increases of 7.0% and 1.6%,
respectively.

“We were pleased to leverage our sales growth into a 70-basis-point expansion
of consolidated gross margin (excluding freight and delivery revenues). In
fact, we achieved gross margin improvement in each of our Aggregates business’
three reportable segments, with the Southeast and West Groups each reporting a
200-basis-point expansion. Growth in the Mid-America Group was led by the
Mid-Atlantic Division, which once again leveraged an increase in aggregates
shipments into an incremental gross margin (excluding freight and delivery
revenues) exceeding our publicly stated expectations.

“SG&A expenses were 6.2% of net sales, a 20-basis-point increase compared with
the prior-year quarter. On an absolute basis, SG&A expenses increased $5.0
million, in part due to higher pension and an information systems upgrade we
successfully completed in October. Our implementation team did an outstanding
job on this multi-year project while maintaining disciplined focus on their
recurring responsibilities.

“In July, we completed an acquisition of three aggregates quarries in the
greater Atlanta, Georgia, area. This transaction added over 800 million tons
of permitted aggregates reserves, which enhances our long-term position in
this market. The integration of these locations is complete, and we look
forward to the contributions from these quarries.

“Specialty Products continued its strong performance and generated record
third-quarter net sales of $55.8 million, a 13% increase over the prior-year
quarter. Sales growth was attributable to the dolomitic lime product line,
reflecting the contribution from the Woodville kiln that became operational
during the fourth quarter of 2012. While margins were negatively affected by a
planned kiln outage for maintenance and higher coal costs, the business
generated a third-quarter record $17.3 million in earnings from operations.

LIQUIDITY AND CAPITAL RESOURCES

“Cash provided by operating activities for the first nine months of 2013 was
$165.6 million compared with $122.0 million in 2012. The improvement is
attributable to the absence of significant business development costs incurred
2012.

“At September 30, 2013, our ratio of consolidated debt to consolidated EBITDA,
as defined, for the trailing twelve months was 3.06 times, in compliance with
our covenant.

FULL-YEAR 2013 AND PRELIMINARY 2014 OUTLOOK

“As noted above, we are encouraged by various positive trends in our business
and markets – especially in private-sector employment and construction. We
anticipate volumes in the nonresidential end-use market to increase in the
mid-single digits given that the Architecture Billings Index, or ABI, a
leading economic indicator for nonresidential construction spending activity,
remains at a strong level and has shown consistent growth over the last year.
Residential construction is experiencing a level of growth not seen since late
2005 with seasonally-adjusted starts ahead of any period since 2008. We
believe this trend in housing starts will continue and our residential end-use
market will experience high single-digit volume growth. By contrast, the
weather-related slowdown in aggregates shipments experienced in the first half
of the year, coupled with the hesitancy created by the uncertainty of future
federal highway funding levels, leads us to expect aggregates shipments to the
infrastructure end-use market to be down in the mid-single digits for the full
year. Our ChemRock/Rail end-use market is expected to be flat compared with
2012.

“Cumulatively, dependent on fourth-quarter weather, we anticipate aggregates
product line shipments will be flat to slightly up as compared with 2012
levels. We currently expect aggregates product line pricing will increase 2%
to 4% for the full year compared with 2012. A variety of factors beyond our
direct control may continue to exert pressure on our volumes, and our
forecasted pricing increase will not be uniform across the company.

“We expect our vertically integrated businesses to generate between $335
million and $355 million of net sales and $18 million to $20 million of gross
profit.

“Aggregates product line direct production costs per ton should be up slightly
compared with 2012. SG&A expenses, excluding costs in 2013 and 2012 related to
the information systems upgrade, as a percentage of net sales are expected to
remain relatively flat compared with 2012.

“Net sales for the Specialty Products segment are expected to be between $220
million and $230 million, generating $81 million to $85 million of gross
profit. Steel utilization and natural gas prices are two key factors for this
segment.

“Interest expense is expected to remain relatively flat compared with 2012.
Our effective tax rate is expected to approximate 26%, excluding discrete
events. Capital expenditures are forecast at $155 million.

“We have started framing a preliminary 2014 outlook for our end-use markets
and, while the current environment in Washington, D.C., reduces clarity, we
have formed an initial view based on our internal observations in conjunction
with McGraw Hill Construction’s recent economic forecast. We currently expect
shipments to the infrastructure end-use market to increase slightly. We
anticipate our nonresidential end-use market to increase in the mid-to-high
single digits, led by strength in the commercial component and energy sector.
We believe the recent positive trend in housing starts will continue and our
residential end-use market will experience double-digit volume growth.
Finally, we expect our ChemRock/Rail end-use market to be up low single digits
compared with 2013.”

RISKS TO OUTLOOK

The full-year 2013 and preliminary 2014 outlook include management’s
assessment of the likelihood of certain risk factors that will affect
performance. The most significant risk to the Corporation’s performance will
be the United States economy and its impact on construction activity. While
transportation investment is mostly exempt from spending cuts, the impact of
sequester may increase in future periods. While both MAP-21 and TIFIA credit
assistance are excluded from the federal budget sequester and the U.S. debt
ceiling limit, the ultimate resolution of these issues may have a significant
impact on the economy and, consequently, construction activity. In addition,
the prolonged government shutdown may further erode consumer confidence, which
may negatively impact investment in construction projects. Other risks related
to the Corporation’s future performance include, but are not limited to, both
price and volume and include a recurrence of widespread decline in aggregates
volume negatively affecting aggregates price; the termination, capping and/or
reduction of the federal and/or state gasoline tax(es) or other revenue
related to infrastructure construction; a significant change in the funding
patterns for traditional federal, state and/or local infrastructure projects;
a reduction in defense spending, and the subsequent impact on construction
activity on or near military bases; a decline in nonresidential construction,
a decline in energy-related drilling activity resulting from certain
regulatory or economic factors, a slowdown in the residential construction
recovery, or some combination thereof; and a reduction in ChemRock/Rail
shipments resulting from the uncertainty as to the timing and funding levels
of the domestic farm bill and declining coal traffic on the railroads.
Further, increased highway construction funding pressures resulting from
either federal or state issues can affect profitability. If these negatively
affect transportation budgets more than in the past, construction spending
could be reduced. North Carolina, a state that disproportionately affects the
Corporation’s revenue and profitability, is among the states experiencing
these fiscal pressures, although recent statistics indicate that
transportation and tax revenues are increasing. The Specialty Products
business essentially runs at capacity; therefore any unplanned changes in
costs or realignment of customers introduce volatility to the earnings of this
segment.

The Corporation’s principal business serves customers in aggregates-related
construction markets. This concentration could increase the risk of potential
losses on customer receivables; however, payment bonds normally posted on
public projects, together with lien rights on private projects, help to
mitigate the risk of uncollectible receivables. The level of aggregates demand
in the Corporation’s end-use markets, production levels and the management of
production costs will affect the operating leverage of the Aggregates business
and, therefore, profitability. Production costs in the Aggregates business are
also sensitive to energy prices, both directly and indirectly. Diesel fuel and
other consumables change production costs directly through consumption or
indirectly by increased energy-related input costs, such as steel, explosives,
tires and conveyor belts. Fluctuating diesel fuel pricing also affects
transportation costs, primarily through fuel surcharges in the Corporation’s
long-haul distribution network. The Specialty Products business is sensitive
to changes in domestic steel capacity utilization and the absolute price and
fluctuations in the cost of natural gas.

Transportation in the Corporation’s long-haul network, particularly rail cars
and locomotive power to move trains, affects our ability to efficiently
transport material into certain markets, most notably Texas, Florida and the
Gulf Coast. The availability of trucks and drivers to transport our product,
particularly in markets experiencing increased demand due to energy-sector
activity, is also a risk. The Aggregates business is also subject to
weather-related risks that can significantly affect production schedules and
profitability. The first and fourth quarters are most adversely affected by
winter weather. Hurricane activity in the Atlantic Ocean and Gulf Coast
generally is most active during the third and fourth quarters.

Risks to the outlook include shipment declines as a result of economic events
beyond the Corporation’s control. In addition to the impact on nonresidential
and residential construction, the Corporation is exposed to risk in its
estimated outlook from credit markets and the availability of and interest
cost related to its debt.

CONFERENCE CALL INFORMATION

The Company will host an online web simulcast of its third-quarter 2013
earnings conference call later today (November 7, 2013). The live broadcast of
the Martin Marietta Materials, Inc. conference call will begin at 2p.m.
Eastern Time today. An online replay will be available approximately two hours
following the conclusion of the live broadcast. A link to these events will be
available at the Corporation’s website.

For those investors without online web access, the conference call may also be
accessed by calling (970) 315-0423, confirmation number 94574659.

Martin Marietta Materials, Inc. is the nation’s second largest producer of
construction aggregates and a producer of magnesia-based chemicals and
dolomitic lime. For more information about Martin Marietta Materials, Inc.,
refer to the Corporation’s website at www.martinmarietta.com.

If you are interested in Martin Marietta Materials, Inc. stock, management
recommends that, at a minimum, you read the Corporation’s current annual
report and Forms 10-K, 10-Q and 8-K reports to the Securities and Exchange
Commission (SEC) over the past year. The Corporation’s recent proxy statement
for the annual meeting of shareholders also contains important information.
These and other materials that have been filed with the SEC are accessible
through the Corporation’s website at www.martinmarietta.com and are also
available at the SEC’s website at www.sec.gov. You may also write or call the
Corporation’s Corporate Secretary, who will provide copies of such reports.

Investors are cautioned that all statements in this press release that relate
to the future involve risks and uncertainties, and are based on assumptions
that the Corporation believes in good faith are reasonable but which may be
materially different from actual results. Forward-looking statements give the
investor our expectations or forecasts of future events. You can identify
these statements by the fact that they do not relate only to historical or
current facts. They may use words such as "anticipate," "expect," "should be,"
"believe," “will”, and other words of similar meaning in connection with
future events or future operating or financial performance. Any or all of our
forward-looking statements here and in other publications may turn out to be
wrong.

Factors that the Corporation currently believes could cause actual results to
differ materially from the forward-looking statements in this press release 
include, but are not limited to, the performance of the United States economy
and the resolution and impact of the debt ceiling and sequestration issues;
widespread decline in aggregates pricing; the termination, capping and/or
reduction of the federal and/or state gasoline tax(es) or other revenue
related to infrastructure construction; the level and timing of federal and
state transportation funding, including federal stimulus projects and most
particularly in North Carolina, one of the Corporation’s largest and most
profitable states, and Texas, Iowa, Colorado and Georgia; the ability of
states and/or other entities to finance approved projects either with tax
revenues or alternative financing structures; levels of construction spending
in the markets the Corporation serves; a reduction in defense spending, and
the subsequent impact on construction activity on or near military bases; a
decline in the commercial component of the nonresidential construction market,
notably office and retail space; a slowdown in energy-related drilling
activity; a slowdown in residential construction recovery; a reduction in
shipments due to decline in funding under the domestic farm bill; unfavorable
weather conditions, particularly Atlantic Ocean hurricane activity, the late
start to spring or the early onset of winter and the impact of a drought or
excessive rainfall in the markets served by the Corporation; the volatility of
fuel costs, particularly diesel fuel, and the impact on the cost of other
consumables, namely steel, explosives, tires and conveyor belts; continued
increases in the cost of other repair and supply parts; transportation
availability, notably the availability of railcars and locomotive power to
move trains to supply the Corporation’s Texas, Florida and Gulf Coast markets;
increased transportation costs, including increases from higher passed-through
energy and other costs to comply with tightening regulations as well as higher
volumes of rail and water shipments; availability and cost of construction
equipment in the United States; weakening in the steel industry markets served
by the Corporation’s dolomitic lime products; inflation and its effect on both
production and interest costs; ability to successfully integrate acquisitions
quickly and in a cost-effective manner and achieve anticipated profitability
to maintain compliance with the Corporation’s leverage ratio debt covenant;
changes in tax laws, the interpretation of such laws and/or administrative
practices that would increase the Corporation’s tax rate; violation of the
Corporation’s debt covenant if price and/or volumes return to previous levels
of instability; downward pressure on the Corporation’s common stock price and
its impact on goodwill impairment evaluations; reduction of the Corporation’s
credit rating to non-investment grade resulting from strategic acquisitions;
and other risk factors listed from time to time found in the Corporation’s
filings with the SEC. Other factors besides those listed here may also
adversely affect the Corporation, and may be material to the Corporation. The
Corporation assumes no obligation to update any such forward-looking
statements.

                                                            
MARTIN MARIETTA MATERIALS, INC.
Unaudited Statements of Earnings
(In millions, except per share amounts)
                                                                             
                           Three Months Ended      Nine Months Ended
                           September 30,           September 30,
                           2013        2012        2013          2012
Net sales                  $ 600.5     $ 537.5     $ 1,451.8     $ 1,376.9
Freight and delivery        64.8      54.8      158.7       152.7   
revenues
Total revenues              665.3     592.3     1,610.5     1,529.6 
                                                                             
Cost of sales                457.4       413.5       1,188.9       1,126.5
Freight and delivery        64.8      54.8      158.7       152.7   
costs
Total cost of revenues      522.2     468.3     1,347.6     1,279.2 
Gross profit                 143.1       124.0       262.9         250.4
                                                                             
Selling, general and         37.1        32.1        112.6         100.4
administrative expenses
Business development         0.1         -           0.7           35.1
costs
Other operating (income)    (2.9  )    0.4       (5.6    )    (1.0    )
and expenses, net
Earnings from operations     108.8       91.5        155.2         115.9
                                                                             
Interest expense             13.5        13.2        40.6          40.0
Other nonoperating
expenses and (income),      0.1       0.6       0.3         (1.4    )
net
Earnings from continuing
operations before taxes      95.2        77.7        114.3         77.3
on income
Income tax expense          22.9      13.7      29.6        12.5    
Earnings from continuing     72.3        64.0        84.7          64.8
operations
                                                                             
Loss on discontinued
operations, net of
related tax benefit of       (0.3  )     (0.3  )     (0.4    )     (1.0    )
$0.2, $0.4, $0.3 and
$0.5, respectively
                                                                             
Consolidated net             72.0        63.7        84.3          63.8
earnings
Less: Net earnings
(loss) attributable to      0.2       0.8       (1.0    )    0.9     
noncontrolling interests
                                                                             
Net earnings
attributable to Martin     $ 71.8     $ 62.9     $ 85.3       $ 62.9    
Marietta Materials, Inc.
                                                                             
Net earnings (loss)
attributable to Martin
Marietta Materials, Inc.
per common share:
Basic from continuing
operations attributable    $ 1.56      $ 1.37      $ 1.85        $ 1.39
to common shareholders
Discontinued operations
attributable to common      (0.01 )    (0.01 )    (0.01   )    (0.02   )
shareholders
                           $ 1.55     $ 1.36     $ 1.84       $ 1.37    
                                                                             
Diluted from continuing
operations attributable    $ 1.55      $ 1.37      $ 1.85        $ 1.38
to common shareholders
Discontinued operations
attributable to common      (0.01 )    (0.01 )    (0.01   )    (0.02   )
shareholders
                           $ 1.54     $ 1.36     $ 1.84       $ 1.36    
                                                                             
Cash dividends per         $ 0.40     $ 0.40     $ 1.20       $ 1.20    
common share
                                                                             
Weighted-average common
shares outstanding:
Basic                       46.2      45.9      46.1        45.8    
Diluted                     46.3      46.0      46.3        45.9    
                                                                             

                                                        
MARTIN MARIETTA MATERIALS, INC.
Unaudited Financial Highlights
(In millions)
                                                                             
                   Three Months Ended          Nine Months Ended
                   September 30,               September 30,
                   2013            2012        2013              2012
Net sales:
Aggregates
Business:
Mid-America        $ 216.4         $ 194.2     $ 509.0           $ 493.5
Group
Southeast Group      64.9            57.0        171.5             171.0
West Group          263.4         236.9     603.8           560.8   
Total Aggregates     544.7           488.1       1,284.3           1,225.3
Business
Specialty           55.8          49.4      167.5           151.6   
Products
Total              $ 600.5        $ 537.5    $ 1,451.8        $ 1,376.9 
                                                                             
Gross profit
(loss):
Aggregates
Business:
Mid-America        $ 77.0          $ 68.4      $ 136.6           $ 131.7
Group
Southeast Group      2.6             1.1         (2.9    )         0.3
West Group          43.3          34.1      69.9            60.5    
Total Aggregates     122.9           103.6       203.6             192.5
Business
Specialty            19.9            19.7        60.8              59.1
Products
Corporate           0.3           0.7       (1.5    )        (1.2    )
Total              $ 143.1        $ 124.0    $ 262.9          $ 250.4   
                                                                             
Selling, general
and
administrative
expenses:
Aggregates
Business:
Mid-America        $ 12.5          $ 12.9      $ 37.4            $ 39.9
Group
Southeast Group      4.4             4.3         13.4              13.7
West Group          11.5          11.2      34.5            33.5    
Total Aggregates     28.4            28.4        85.3              87.1
Business
Specialty            2.6             2.2         7.6               6.9
Products
Corporate           6.1           1.5       19.7            6.4     
Total              $ 37.1         $ 32.1     $ 112.6          $ 100.4   
                                                                             
Earnings (Loss)
from operations:
Aggregates
Business:
Mid-America        $ 66.4          $ 56.4      $ 102.3           $ 95.0
Group
Southeast Group      (1.4  )         (3.5  )     (14.9   )         (15.0   )
West Group          32.3          23.7      38.4            29.2    
Total Aggregates     97.3            76.6        125.8             109.2
Business
Specialty            17.3            17.0        53.1              52.7
Products
Corporate           (5.8  )        (2.1  )    (23.7   )        (46.0   )
Total              $ 108.8        $ 91.5     $ 155.2          $ 115.9   
                                                                             

                                                            
MARTIN MARIETTA MATERIALS, INC.
Unaudited Financial Highlights
(In millions)
                                                                             
                              Three Months Ended   Nine Months Ended
                              September 30,        September 30,
                              2013       2012      2013          2012
                                                                             
Net sales by product line:
Aggregates Business:
Aggregates                    $  411.2   $ 371.4   $ 1,016.3     $ 985.6
Asphalt                          23.8      28.9      52.2          61.7
Ready Mixed Concrete             41.8      31.5      103.4         78.7
Road Paving                     67.9     56.3     112.4       99.3    
Total Aggregates Business        544.7     488.1     1,284.3       1,225.3
Specialty Products Business     55.8     49.4     167.5       151.6   
Total                         $  600.5   $ 537.5   $ 1,451.8    $ 1,376.9 
                                                                             
Gross profit (loss) by
product line:
Aggregates Business:
Aggregates                    $  108.2   $ 94.5    $ 189.2       $ 182.9
Asphalt                          7.3       6.3       9.8           9.0
Ready Mixed Concrete             3.1       0.5       4.9           0.4
Road Paving                     4.3      2.3      (0.3    )    0.2     
Total Aggregates Business        122.9     103.6     203.6         192.5
Specialty Products Business      19.9      19.7      60.8          59.1
Corporate                       0.3      0.7      (1.5    )    (1.2    )
Total                         $  143.1   $ 124.0   $ 262.9      $ 250.4   
                                                                             
                                                                             
Depreciation                  $  41.0    $ 41.5    $ 122.1       $ 125.5
Depletion                        1.7       1.5       3.9           3.5
Amortization                    1.4      1.2      4.1         4.0     
                              $  44.1    $ 44.2    $ 130.1      $ 133.0   
                                                                             

                                                           
MARTIN MARIETTA MATERIALS, INC.
Balance Sheet Data
(In millions)
                                                                             
                                September 30,   December 31,   September 30,
                                2013            2012           2012
                                (Unaudited)     (Audited)      (Unaudited)
ASSETS
Cash and cash equivalents       $   57.2        $   25.4       $   35.4
Accounts receivable, net            331.0           224.1          296.9
Inventories, net                    350.4           332.3          335.1
Other current assets                107.1           118.6          117.7
Property, plant and                 1,782.6         1,753.2        1,750.9
equipment, net
Intangible assets, net              665.7           666.6          667.3
Other noncurrent assets             43.1            40.7           39.9
Total assets                    $   3,337.1     $   3,160.9    $   3,243.2
                                                                             
                                                                             
LIABILITIES AND EQUITY
Current maturities of
long-term debt and short-term   $   6.2         $   5.7        $   6.7
facilities
Other current liabilities           220.2           167.6          210.4
Long-term debt (excluding           1,107.2         1,042.2        1,092.1
current maturities)
Other noncurrent liabilities        504.6           495.1          464.0
Total equity                       1,498.9        1,450.3       1,470.0
Total liabilities and equity    $   3,337.1     $   3,160.9    $   3,243.2
                                                                             

                                                               
MARTIN MARIETTA MATERIALS, INC.
Unaudited Statements of Cash Flows
(In millions)
                                                     Nine Months Ended
                                                     September 30,
                                                     2013         2012
Operating activities:
Consolidated net earnings                            $ 84.3       $ 63.8
Adjustments to reconcile consolidated net earnings
to net cash provided by operating activities:
Depreciation, depletion and amortization               130.1        133.0
Stock-based compensation expense                       5.4          5.9
Gains on divestitures and sales of assets              (1.0   )     (0.9   )
Deferred income taxes                                  19.2         11.6
Excess tax benefits from stock-based compensation      (2.0   )     -
Changes in operating assets and liabilities:           (0.8   )     2.3
Changes in operating assets and liabilities:
Accounts receivable, net                               (108.1 )     (93.2  )
Inventories, net                                       (14.8  )     (12.5  )
Accounts payable                                       27.7         7.1
Other assets and liabilities, net                     25.6       4.9    
                                                                             
Net cash provided by operating activities             165.6      122.0  
                                                                             
Investing activities:
Additions to property, plant and equipment             (102.3 )     (105.9 )
Acquisitions, net                                      (64.4  )     (0.1   )
Proceeds from divestitures and sales of assets         3.1          7.8
Loan to affiliate                                     (3.4   )    -      
                                                                             
Net cash used for investing activities                (167.0 )    (98.2  )
                                                                             
Financing activities:
Borrowings of long-term debt                           355.5        181.0
Repayments of long-term debt                           (290.2 )     (142.6 )
Change in bank overdraft                               10.4         0.1
Dividends paid                                         (55.6  )     (55.3  )
Debt issue costs                                       (0.5   )     (0.3   )
Issuances of common stock                              11.6         3.5
Excess tax benefits from stock-based compensation      2.0          -
Distributions to owners of noncontrolling             -          (0.8   )
interests
                                                                             
Net cash provided by (used for) financing             33.2       (14.4  )
activities
                                                                             
Net increase in cash and cash equivalents              31.8         9.4
Cash and cash equivalents, beginning of period        25.4       26.0   
                                                                             
Cash and cash equivalents, end of period             $ 57.2      $ 35.4   
                                                                             

                   
MARTIN MARIETTA MATERIALS, INC.
Unaudited Operational Highlights
                                                                  
                       Three Months Ended            Nine Months Ended
                       September 30, 2013            September 30, 2013
                       Volume          Pricing       Volume       Pricing
Volume/Pricing
Variance ^(1)
Heritage
Aggregates Product
Line: ^(2)
Mid-America Group      8.1       %     2.8       %   0.4     %    2.6       %
Southeast Group        4.8       %     1.3       %   (4.7    %)   2.4       %
West Group             6.5       %     1.7       %   0.8     %    3.9       %
Heritage
Aggregates             7.0       %     2.2       %   (0.2    %)   2.8       %
Operations
Aggregates Product     8.1       %     2.3       %   0.2     %    2.9       %
Line ^(3)
                                                                  
                       Three Months Ended            Nine Months Ended
                       September 30,                 September 30,
Shipments (tons in     2013            2012          2013         2012
thousands)
Heritage
Aggregates Product
Line: ^(2)
Mid-America Group      19,172          17,742        44,387       44,216
Southeast Group        4,612           4,399         12,705       13,334
West Group             15,468         14,528       39,489      39,183    
Heritage
Aggregates             39,252          36,669        96,581       96,733
Operations
Acquisitions           379             -             402          -
Divestitures ^(4)      -              5            3           36        
Aggregates Product     39,631         36,674       96,986      96,769    
Line ^(3)
                                                                  
(1) Volume/pricing variances reflect the percentage increase (decrease) from
the comparable period in the prior year.
                                                                  
(2) Heritage Aggregates product line excludes volume and pricing data for
acquisitions that have not been included in prior-year operations for the
comparable period and divestitures.
                                                                  
(3) Aggregates product line includes all acquisitions from the date of
acquisition and divestitures through the date of disposal.
                                                                  
(4) Divestitures include the tons related to divested aggregates product line
operations up to the date of divestiture.
                                                                  
                                                                  
                       Three Months Ended            Nine Months Ended
                       September 30,                 September 30,
                       2013            2012          2013         2012
Unit Shipments by
Product Line (in
thousands):
                                                                  
Aggregates tons -      38,109          35,254        93,516       93,380
external customers
Internal
aggregates tons        1,522          1,420        3,470       3,389     
used in other
product lines
Total aggregates       39,631         36,674       96,986      96,769    
tons
                                                                  
                                                                  
Asphalt tons -         464             538           1,072        1,329
external customers
Internal asphalt
tons used in road      761            717          1,257       1,203     
paving business
Total asphalt tons     1,225          1,255        2,329       2,532     
                                                                  
                                                                  
Ready Mixed
Concrete - cubic       496            418          1,261       1,062     
yards
                                                                  
Average unit sales price by product line (including internal sales):
                                                                  
Aggregates             $10.55/ton      $10.32/ton    $10.62/ton   $10.33/ton
Asphalt                $41.76/ton      $41.11/ton    $42.11/ton   $40.84/ton
Ready Mixed            $83.44/cubic    $77.99/cubic  $82.59/cubic $76.55/cubic
Concrete               yard            yard          yard         yard
                                                                  


MARTIN MARIETTA MATERIALS, INC.
Non-GAAP Financial Measures
(Dollars in millions)
                                                           
Gross margin as a percentage of net sales and operating margin as a percentage
of net sales represent non-GAAP measures. The Corporation presents these
ratios calculated based on net sales, as it is consistent with the basis by
which management reviews the Corporation's operating results. Further,
management believes it is consistent with the basis by which investors analyze
the Corporation's operating results, given that freight and delivery revenues
and costs represent pass-throughs and have no profit markup. Gross margin and
operating margin calculated as percentages of total revenues represent the
most directly comparable financial measures calculated in accordance with
generally accepted accounting principles ("GAAP"). The following tables
present the calculations of gross margin and operating margin for the three
and nine months ended September 30, 2013 and 2012, in accordance with GAAP and
reconciliations of the ratios as percentages of total revenues to percentages
of net sales:
                                                                 
CONSOLIDATED
                                                                 
Gross
Margin in
Accordance     Three Months Ended              Nine Months Ended
with
Generally
Accepted
Accounting     September 30,                   September 30,
Principles
               2013            2012            2013              2012
Gross          $  143.1       $  124.0       $  262.9         $  250.4    
profit
Total          $  665.3       $  592.3       $  1,610.5       $  1,529.6  
revenues
Gross            21.5   %       20.9   %       16.3     %       16.4     %
margin
                                                                 
               Three Months Ended              Nine Months Ended
               September 30,                   September 30,
Gross
Margin
Excluding      2013            2012            2013              2012
Freight and
Delivery
Revenues
                                                                 
Gross          $  143.1       $  124.0       $  262.9         $  250.4    
profit
Total          $  665.3        $  592.3        $  1,610.5        $  1,529.6
revenues
Less:
Freight and      (64.8  )       (54.8  )       (158.7   )       (152.7   )
delivery
revenues
Net sales      $  600.5       $  537.5       $  1,451.8       $  1,376.9  
Gross
margin
excluding        23.8   %       23.1   %       18.1     %       18.2     %
freight and
delivery
revenues
                                                                 
Operating
Margin in
Accordance     Three Months Ended              Nine Months Ended
with
Generally
Accepted
Accounting     September 30,                   September 30,
Principles
               2013            2012            2013              2012
Earnings
from           $  108.8       $  91.5        $  155.2         $  115.9    
operations
Total          $  665.3       $  592.3       $  1,610.5       $  1,529.6  
revenues
Operating        16.4   %       15.5   %       9.6      %       7.6      %
margin
                                                                 
               Three Months Ended              Nine Months Ended
Operating
Margin
Excluding      September 30,                   September 30,
Freight and
Delivery
Revenues
               2013            2012            2013              2012
Earnings
from           $  108.8       $  91.5        $  155.2         $  115.9    
operations
Total          $  665.3        $  592.3        $  1,610.5        $  1,529.6
revenues
Less:
Freight and      (64.8  )       (54.8  )       (158.7   )       (152.7   )
delivery
revenues
Net sales      $  600.5       $  537.5       $  1,451.8       $  1,376.9  
Operating
margin
excluding        18.1   %       17.0   %       10.7     %       8.4      %
freight and
delivery
revenues
                                                                 
                                                                 
                                                                 
AGGREGATES BUSINESS
                                                                 
Operating
Margin in
Accordance     Three Months Ended              Nine Months Ended
with
Generally
Accepted
Accounting     September 30,                   September 30,
Principles
                                                                 
Earnings
from           $  97.3        $  76.6        $  125.8         $  109.2    
operations
Total          $  604.7       $  538.2       $  1,428.4       $  1,364.0  
revenues
Operating        16.1   %       14.2   %       8.8      %       8.0      %
margin
                                                                 
               Three Months Ended              Nine Months Ended
Operating
Margin
Excluding      September 30,                   September 30,
Freight and
Delivery
Revenues
                                                                 
Earnings
from           $  97.3        $  76.6        $  125.8         $  109.2    
operations
Total          $  604.7        $  538.2        $  1,428.4        $  1,364.0
revenues
Less:
Freight and      (60.0  )       (50.1  )       (144.1   )       (138.7   )
delivery
revenues
Net sales      $  544.7       $  488.1       $  1,284.3       $  1,225.3  
Operating
margin
excluding        17.9   %       15.7   %       9.8      %       8.9      %
freight and
delivery
revenues
                                                                             


MARTIN MARIETTA MATERIALS, INC.
Non-GAAP Financial Measures (continued)
(Dollars in millions)
                                       
The ratio of Consolidated Debt-to-Consolidated EBITDA, as defined, for the
trailing twelve months is a covenant under the Corporation's revolving credit
facility, term loan facility and accounts receivable securitization facility.
Under the terms of these agreements, as amended, the Corporation's ratio of
Consolidated Debt-to-Consolidated EBITDA as defined, for the trailing twelve
months can not exceed 3.50 times as of September 30, 2013, with certain
exceptions related to qualifying acquisitions, as defined.
                                              
                                              
The following presents the calculation of Consolidated Debt-to-Consolidated
EBITDA, as defined, for the trailing-twelve months at September 30, 2013. For
supporting calculations, refer to Corporation's website at
www.martinmarietta.com.


                                              Twelve-Month Period
                                              October 1, 2012 to
                                              September 30, 2013
Earnings from continuing operations
attributable to Martin Marietta               $       106.8
Materials, Inc.
Add back:
Interest expense                                      54.0
Income tax expense                                    33.9
Depreciation, depletion and                           169.6
amortization expense
Stock-based compensation expense                      7.2
Deduct:
Interest income                                      (0.3             )
Consolidated EBITDA, as defined               $       371.2            
                                              
Consolidated Debt, including debt
guaranteed by the Corporation, at             $       1,135.3
September 30, 2013
Less: Unrestricted cash and cash
equivalents in excess of $50 at                      -                
September 30, 2013
Consolidated Net Debt, as defined, at         $       1,135.3          
September 30, 2013
                                              
Consolidated Debt-to-Consolidated
EBITDA, as defined, at September 30,                 3.06 times       
2013 for the trailing twelve-month
EBITDA
                                              
                                              
                                              
                                              
EBITDA is a widely accepted financial indicator of a company's ability to
service and/or incur indebtedness. EBITDA is not defined by generally accepted
accounting principles and, as such, should not be construed as an alternative
to net earnings or operating cash flow. For further information on EBITDA,
refer to the Corporation's website at www.martinmarietta.com. EBITDA is as
follows for the three and nine months ended September 30, 2013 and 2012.


                                                          
                                        Three Months Ended   Nine Months Ended
                                        September 30,        September 30,
                                        2013      2012      2013     2012
Earnings Before Interest, Income
Taxes, Depreciation, Depletion and      $  151.6   $ 133.3   $ 283.9   $ 246.4
Amortization (EBITDA)
                                                                       
                                                                       
A Reconciliation of Net Earnings Attributable to Martin Marietta Materials,
Inc. to EBITDA is as follows:
                                                             
                                        Three Months Ended   Nine Months Ended
                                        September 30,        September 30,
                                        2013       2012      2013      2012
Net Earnings Attributable to Martin     $  71.8    $ 62.9    $ 85.3    $ 62.9
Marietta Materials, Inc.
Add back:
Interest Expense                           13.5      13.2      40.6      40.0
Income Tax Expense for Controlling         22.7      13.3      29.4      11.9
Interests
Depreciation, Depletion and               43.6     43.9     128.6    131.6
Amortization Expense
EBITDA                                  $  151.6   $ 133.3   $ 283.9   $ 246.4
                                                                         

MLM-E

Contact:

Martin Marietta Materials, Inc.
Anne H. Lloyd, 919-783-4660
Executive Vice President and Chief
Financial Officer
www.martinmarietta.com