Martin Marietta Materials, Inc. · NYSE:MLM
Martin Marietta Materials — Q2 2005 Earnings Presentation
51 slides from Martin Marietta Materials's earnings presentation, 2005
Slide 1: Martin Marietta Materials
Martin Marietta Materials
Slide 2: Lines of Business - Aggregates
Lines of Business - Aggregates
Slide 3: Lines of Business – Magnesia Specialties & Structural Composites
Lines of Business – Magnesia Specialties & Structural Composites
Slide 4: Materials Financials ($M)
Materials Financials ($M) Three Months Ended Percent June 30, Change 2005 2004 Net Sales(1) $ 479 $ 407 18% Operating Earnings(1) $ 98 $ 74 32% Net Earnings $ 61 $ 45 36% Earnings per Diluted Share(1) $ 1.30 $ 0.93 41% (1) Net sales, operating earnings, and earnings per diluted share are from contin
Slide 5: Materials Financials ($M)
Materials Financials ($M) Six Months Ended Percent June 30, Change 2005 2004 Net Sales(1) $ 819 $ 705 16% Operating Earnings(1) $ 117 $ 79 48% Net Earnings $ 68 $ 38 79% Earnings per Diluted Share(1) $ 1.47 $ 0.84 75% (1) Net sales, operating earnings, and earnings per diluted share are from continu
Slide 6: Materials Financials ($M)
Materials Financials ($M) Year Ended Percent December 31, Change 2004 2003 Net Sales(1) $1,551 $1,476 5% Operating Earnings(1) $ 226 $ 195 16% Net Earnings(2) $ 129 $ 100 29% Earnings per Diluted Share(2) $ 2.66 $ 2.05 30% (1) Net sales and operating earnings from continuing operations. (2) Before c
Slide 7: Materials Selected Balance Sheet Data ($M)
Materials Selected Balance Sheet Data ($M) June 30, December 31, 2005 2004 2003 2002 Equity $1,138 $ 1,153 $ 1,130 $ 1,083 Debt $ 712 $ 715 $ 718 $ 745 Debt/Total Capitalization(1) 35% 32% 34% 40% (1) Calculation is net of available cash and the impact of interest rate swaps. Detailed calculation ca
Slide 8: Cash Flow From Operations
Cash Flow From Operations $277 $267 300 $253 250 $213 $204 200 $ Millions 150 100 50 0 '00 '01 '02 '03 '04 = Cash on hand = Proceeds from divestiture of assets
Slide 9: Uses of Cash ($M)
Uses of Cash ($M) 2004 2003 Change • Pension Investment $ 51 $ 21 $30 • Capital Investment $163 $121 $42 • Share Repurchase $ 75 $ 15 $60 • Dividend (11% per share increase in 9/04) $ 36 $ 34 $ 2 • Cash on Hand $162 $125 $37
Slide 10: Aggregates
Aggregates
Slide 11: Aggregates Financials ($M)
Aggregates Financials ($M) Three Months Ended Percent June 30, Change 2005(1) 2004(1) Net Sales $ 448 $ 379 18% Operating Earnings $ 96 $ 72 33% Operating Margin 21.5% 19.0% (1) All amounts presented are from continuing operations.
Slide 12: Aggregates Financials ($M)
Aggregates Financials ($M) Six Months Ended Percent June 30, Change 2005(1) 2004(1) Net Sales $ 758 $ 650 17% Operating Earnings $ 113 $ 75 51% Operating Margin 14.9% 11.5% (1) All amounts presented are from continuing operations.
Slide 13: Aggregates Financials ($M)
Aggregates Financials ($M) Year Ended Percent December 31, Change 2004(1) 2003(1) Net Sales $1,441 $1,388 4% Operating Earnings $ 220 $ 195 13% Operating Margin 15.3% 14.0% (1) All amounts presented are from continuing operations.
Slide 14: Aggregates Operating Earnings Growth
Aggregates Operating Earnings Growth $220 $195 $195 $190 $200 $176 $ Millions (1) $160 $120 $80 $40 '00 '01 '02 '03 '04 (1) All amounts presented are from continuing operations.
Slide 15: Reasons for Improvement
Reasons for Improvement • Pricing • Cost • Maturing Distribution Network • Revenue Growth in Key Locations • Elimination of Low Performers
Slide 16: Pricing Power
Pricing Power* 4 Average Growth Rate = 2.6 Percent Percent Increase 3 2 1 2000 2001 2002 2003 2004 *Heritage locations
Slide 17: Cost
Cost • Best Practices Program • Rightsizing • Plant Upgrades • Headcount Reduction • Management of Benefits Cost • Better Information Systems
Slide 18: Maturing Distribution Network – Water Markets
Maturing Distribution Network – Water Markets Prince Edward Island Nova Scotia New York City Linden Philadelphia Wilmington, DE Kaskaskia Sparrows Pt. Cave-In-Rock Three Rivers Wilmington, NC Lake Charles Mobile Pensacola Charleston Savannah Producing Locations Beaumont Brunswick Houston Panama City
Slide 19: Maturing Distribution Network – Multi-modal ports
Maturing Distribution Network – Multi-modal ports Prince Edward Island Nova Scotia New York City Linden Philadelphia Wilmington Sparrows Pt. Lake Charles Mobile Pensacola Charleston Deep water quarries Savannah Beaumont Brunswick Jacksonville Houston Panama City New Orleans Port Canaveral Deep water
Slide 20: Florida Network
Florida Network Jacksonville Perry Pensacola Panama City Ocala Brooksville Orlando Sources Tampa Georgia Granite Canaveral Offshore Granite Port Manatee Waterborne Limestone Bradenton Local Limestone Rail CSX Miami FEC NS
Slide 21: Florida Network
Florida Network Jacksonville Orlando Miami
Slide 22: Key Location Performance - 2004
Key Location Performance - 2004 Sales Gross Profit Growth Growth Top 20 Locations 6% 19% Total Aggregates 4% 8%
Slide 23: Aggregates Revenue Profile
Aggregates Revenue Profile NORTHWEST DIVISION IA (14%) 6% IN OH 5% 5% MIDEAST DIVISION NC 19% (33%) SOUTHWEST AR DIVISION 3% SC 5% (24%) LA GA SOUTHEAST TX 4% 8% DIVISION 19% (29%) FL 5%
Slide 24: Growth and Efficiency Improvement
Growth and Efficiency Improvement Long Haul Network Truck Quarries Nova Scotia Berkeley (SC) Bahamas Weeping Water (NE) Beckmann (TX) Burning Springs (WV) Three Rivers (KY) Lemon Springs (NC) N. Columbia (SC) Ruby (GA)
Slide 25: Magnesia Specialties
Magnesia Specialties
Slide 26: Magnesia Specialties Financials ($M)
Magnesia Specialties Financials ($M) Three Months Ended Percent June 30, Change 2005 2004 Net Sales $ 30 $ 27 11% Operating Earnings $ 7 $ 5 40% Operating Margin 23.3% 18.5%
Slide 27: Magnesia Specialties Financials ($M)
Magnesia Specialties Financials ($M) Six Months Ended Percent June 30, Change 2005 2004 Net Sales $ 60 $ 52 15% Operating Earnings $ 12 $ 8 50% Operating Margin 20.0% 15.4%
Slide 28: Magnesia Specialties Financials ($M)
Magnesia Specialties Financials ($M) Year Ended Percent December 31, Change 2004 2003 Net Sales $ 106 $ 86 23% Operating Earnings $ 17 $ 6 183% Operating Margin 17.0% 7.0%
Slide 29: Woodville Lime
Woodville Lime
Slide 30: Lime Division Average Selling Price Index
Lime Division 135 130 125 120 Average Index Selling 115 Price 110 105 100 2000 2001 2002 2003 2004
Slide 31: Woodville Lime
Woodville Lime • Record Production and Earnings in 2004 • 25,000 Tons of Incremental Capacity – Midyear 2005 • Evaluating/Permitting $35 Million Expansion
Slide 32: Magnesia Chemicals
Magnesia Chemicals
Slide 33: 2004 Market Overview
2004 Market Overview Plastics & Rubber Industrial 10% Transformer Steel 6% 43% Other 6% Environmental 35%
Slide 34: Magnesia Chemicals – Industrial
Magnesia Chemicals Industrial 43%
Slide 35: Magnesia Chemicals – Environmental
Magnesia Chemicals Environmental 35%
Slide 36: Magnesia Chemicals – Rubber & Plastics
Magnesia Chemicals Rubber & Plastics 10%
Slide 37: Magnesia Chemicals – Transformer Steel
Magnesia Chemicals Transformer Steel 6%
Slide 38: Magnesia Chemicals – Other
Magnesia Chemicals Other CALCIUM 6% CHLORIDE FUEL ADDITIVES
Slide 39: Magnesia Chemicals: The Dow Deal
Magnesia Chemicals THE DOW DEAL
Slide 40: Magnesia Chemicals – MTD Pipeline, LLC
Magnesia Chemicals – MTD Pipeline, LLC Manistee, MI 27.5 mile pipeline Total Cost - $12M Ludington, MI
Slide 41: Manistee Production Tons
Manistee Production Tons 2000 Pre-Dow Post Dow Refractories Chemicals Chemicals Chemicals 50% 50% 210,000 110,000 180,000
Slide 42: Magnesia Chemicals - Growth
Magnesia Chemicals - Growth • Cellguard™ • Thioguard™ • Magnesium Hydroxide Powder
Slide 43: Structural Composite Products
Structural Composite Products
Slide 44: Structural Composites
Structural Composites • Light Weight • High Strength • Corrosion Resistant • Long Life
Slide 45: Composites – Union County, NC
Composites Union County, NC
Slide 46: Composites
Composites • First Bridge Deck Installation Completed July 1997 • 27 Installations Completed in 13 States • 2 International Installations in Korea and Germany
Slide 47: Composites – Sparta, NC
Composites Sparta, NC
Slide 48: Composites: Focused Market Areas
Composites Focused Market Areas Infrastructure Construction Transportation Bridge Decks Parking Decks Trailers & Chassis Marine Structures Wall Panels Railcar Components Electrical Vaults Heavy Equipment Dump Beds Noise Barriers Components Truck Chassis/Bodies Signs Stay-in-Place Forms Ship Bulkhead
Slide 49: Product Agreements
Product Agreements Major Company Recreational vehicles Greenbriar Insulated rail cars Shredder Company Shredder truck bodies Distributor Flat panel products
Slide 50: Disciplined Growth Value Creation
Disciplined Growth Value Creation
Slide 51: Presentation notice and investor relations contact
The document attached represents one part of a presentation which has been or will be made. It is not a complete record of the presentation because it does not reflect the lengthy oral comments which will be part of the presentation. This document is not intended to be a substitute for our Form 10-K
Martin Marietta Materials — Q2 2005 Earnings Presentation on 6ix