Pit & Quarry, December 2009
addition there are 8 billion of projects for which funds have been obligated but work has not yet begun As of the end of September approximately five months remain for each state to obligate the remaining federal stimulus funds apportioned for highways Afterwards unobligated funds must be returned to the Federal Highway Administration for redistribution Our expectations for growth in demand for our products from stimulusrelated construction activity as well as improvement in residential construction point toward growth in earnings James said Our available production capacity improved cost structure and ongoing efforts to improve cash margins position Vulcan to participate efficiently and effectively in the supply of material for stimulus projects and economic recovery Martin Marietta Materials Stephen P Zelnak Jr chairman and CEO of Martin Marietta Materials stated We continue to see slower progress with respect to the actual commencement of stimulus jobs than we had originally hoped for when the governmentfinanced stimulus program was first announced with wet weather in September continuing Stephen P Zelnak Jr Martin Marietta chairman CEO into October being a negative factor A significant exception to that trend is Iowa where we expect the Iowa Department of Transportation will finish the majority of its stimulus work in 2009 Iowas approach to stimulus projects coupled with our resulting performance in the geographic area underscores the view that the combination of our lean operating cost structure together with even moderate volume recovery provides an enormously powerful combination According to Zelnak commercial construction activity remains weak primarily in office and retail construction While little has changed during 2009 with respect to residential construction indicators increasingly point to the beginning of a recovery in this sector Although it is too early to provide guidance for 2010 Zelnak said we have begun to frame our initial view on the upcoming year We see many of S P E C I A L R E P O R T Martin Marietta Materials Net sales of 428 million down from 525 million in 3Q 2008 Earnings of 55 million down from 66 million in 3Q 2008 Aggregate pricing up 16 12 PIT QUARRY December 2009 www pitandquarry com
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