Martin Marietta Materials (NYSE: MLM) reported Q1 EPS of $0.07, which includes a $0.12 charge, and may note compare to the analyst estimate of $0.11. Revenue for the quarter came in at $631.9 million versus the consensus estimate of $635.97 million.

Ward Nye, Chairman, President and CEO of Martin Marietta, stated: “We are pleased to report improved margins and increased profitability, both considerably ahead of our internal plans, and a first-quarter profit for the first time since 2008. These quarterly results serve as a further validation of our success in executing on our strategic objectives, as well as our relentless commitment to operational excellence and cost discipline. Notably, we achieved volume growth and reported a double-digit pricing increase in our heritage aggregates product line despite severe late winter weather in many markets and significant rainfall in Texas. We view this volume and pricing momentum as an indication of a more construction-centric phase of economic recovery. Our first-quarter results and outlook for the full year have led us to increase our annual aggregates product line pricing guidance from an increase of 4% to 6% to an increase of 7% to 9% over 2014."

FULL-YEAR OUTLOOK

The Company is encouraged by positive trends in its business and markets, notably:

• Nonresidential construction is expected to increase in both the heavy industrial and commercial sectors. The Dodge Momentum Index remains high and signals continued growth.
• Energy-related economic activity, including follow-on public and private construction activities in the Company’s primary markets, is anticipated to remain strong.
• Residential construction is expected to continue to grow, driven by historically low levels of construction activity over the previous several years, employment gains, low mortgage rates, significant lot absorption, higher multi-family rental rates and rising housing prices.
• For the public sector, authorized highway funding from MAP-21 should remain stable compared with 2014. Additionally, state initiatives to finance infrastructure projects, including support from TIFIA, are expected to grow and continue to play an expanded role in public-sector activity.

Based on these trends and expectations, the Company anticipates the following for the full year:

• Aggregates end-use markets compared to 2014 levels are as follows:
• Infrastructure market to increase mid-single digits.
• Nonresidential market to increase in the high-single digits.
• Residential market to experience a double-digit increase.
• ChemRock/Rail market to remain relatively flat.
• Aggregates product line shipments to increase by 10% to 12% compared with 2014 levels.
• Heritage aggregates shipments to increase 4% to 7%.
• Shipments from acquired TXI operations to more than double, reflecting a full year of ownership.
• Aggregates product line pricing to increase by 7% to 9% compared with 2014.
• Aggregates product line production cost per ton shipped to decline slightly.
• Aggregates-related downstream product lines to generate between $875 million and $925 million of net sales and $65 million to $70 million of gross profit.
• Net sales for the Cement segment to be between $475 million and $500 million, generating $120 million to $130 million of gross profit.
• Net sales for the Magnesia Specialties segment to be between $240 million and $250 million, generating $85 million to $90 million of gross profit.
• SG&A expenses as a percentage of net sales to be less than 6.0%, despite an $18 million increase in heritage pension costs that resulted from a lower discount rate.
• Interest expense to approximate $75 million to $80 million.
• Estimated effective income tax rate to approximate 31%, excluding discrete events.
• Consolidated EBITDA to range from $835 million to $875 million.
• Capital expenditures to approximate $320 million, including $35 million of synergy-related capital and $80 million for the continued development of the new Medina limestone quarry outside of San Antonio. The Medina quarry is rail connected and will be able to ship aggregates products to South Texas, including Houston.

Mr. Nye concluded, “We are excited about the solid foundation we have created and the transformational power of Martin Marietta’s business model, which positions us to deliver substantial value to shareholders going forward. The integration of TXI continues on schedule and will, at a minimum, yield synergies in line with our updated guidance. We will continue to operate the business with rigorous discipline. The growing demand for building materials should allow us to strengthen our balance sheet, increase our financial flexibility and invest in our business, all while returning significant value to our shareholders through our repurchase program.”

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