(Reuters) – Construction material firm Martin Marietta Materials on Tuesday topped first-quarter profit estimates after cost cuts helped offset a hit from a slowdown in housing activity.
“Despite near-term interest rate uncertainty, single-family housing remains historically under built, particularly in key Martin Marietta markets with notable population growth,” said CEO Ward Nye.
The Raleigh, North Carolina-based company tightened its full-year revenue forecast to between $6.9 billion and $7.3 billion, from its previous view of $6.75 billion and $7.18 billion.
The new range is, however, below analysts’ estimates of $7.06 billion, according to LSEG data.
Sales of its Aggregates, which consists of certain medium-grained particulate material used in construction, fell about 3% to $885 million during the reported quarter from a year ago, as adverse weather impacted its east and southwest divisions coupled with softening demand in warehouses.
It posted an adjusted net income of $1.93 per share for the quarter ended March 31, compared with estimates of $1.83 per share.
Overall revenue in the first-quarter, however, dipped about 8% to $1.25 billion, falling short of estimates of about $1.32 billion.
(Reporting by Nathan Gomes in Bengaluru; Editing by Shailesh Kuber)
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