ppt Zelnak2005

Slide1: 

Martin Marietta Materials

Lines of Business - Aggregates: 

Lines of Business - Aggregates

Lines of Business – Magnesia Specialties & Structural Composites: 

Lines of Business – Magnesia Specialties & Structural Composites

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 cumulative effect accounting change for FAS 143 adoption of $6.9 million in 2003.

Materials Selected Balance Sheet Data ($M): 

Materials Selected Balance Sheet Data ($M) 2004 2003 2002 December 31, Equity $ 1,153 $ 1,130 $ 1,083 Debt $ 715 $ 718 $ 745 Debt/Total Capitalization(1) 32% 34% 40% (1) Calculation is net of available cash and the impact of interest rate swaps.

Cash Flow From Operations: 

Cash Flow From Operations $ Millions $253 $204 $277  = Cash on hand $267 $213

Uses of Cash – 2004 ($M): 

Uses of Cash – 2004 ($M) 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 2004 2003 Change

Aggregates: 

Aggregates

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.

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Aggregates Operating Earnings Growth $ Millions (1) $190 $195 $176 $195 $220 (1) All amounts presented are from continuing operations.

Reasons for Improvement: 

Reasons for Improvement Pricing Cost Maturing Distribution Network Revenue Growth in Key Locations Elimination of Low Performers

Pricing Power*: 

Pricing Power* Percent Increase *Heritage locations Average Growth Rate = 2.6 Percent

Cost: 

Cost Best Practices Program Rightsizing Plant Upgrades Headcount Reduction Management of Benefits Cost Better Information Systems

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Producing Locations Major Shipping Points Other Shipping Points Maturing Distribution Network – Water Markets St. Croix Aruba Trinidad Guyana Suriname Nova Scotia Prince Edward Island New York City Linden Philadelphia Wilmington, DE Sparrows Pt. Wilmington, NC Charleston Savannah Brunswick Jacksonville Freeport Bahamas Tampa Pascagoula New Orleans Beaumont Lake Charles Mobile Pensacola Panama City Port Canaveral Cave-In-Rock Three Rivers Kaskaskia

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St. Croix Aruba Trinidad Guyana Suriname Prince Edward Island Nova Scotia New York City Linden Philadelphia Wilmington Sparrows Pt. Charleston Savannah Brunswick Jacksonville Tampa Pascagoula Panama City New Orleans Beaumont Lake Charles Mobile Pensacola Freeport Bahamas Deep water quarries Deep water ports Multi-modal ports Port Canaveral Maturing Distribution Network – Multi-modal ports

Florida Network: 

Florida Network Sources Georgia Granite Offshore Granite Waterborne Limestone Local Limestone Rail CSX FEC NS Pensacola Panama City Perry Jacksonville Ocala Orlando Brooksville Tampa Canaveral Port Manatee Bradenton Miami

Florida Network: 

Florida Network

Key Location Performance - 2004: 

Key Location Performance - 2004 Top 20 Locations 6% 19% Total Aggregates 4% 8% Sales Growth Gross Profit Growth

Aggregates Revenue Profile: 

TX 19% IA 6% AR 3% IN 5% GA 8% FL 5% OH 5% SC 5% NC 19% Aggregates Revenue Profile NORTHWEST DIVISION (14%) SOUTHWEST DIVISION (24%) SOUTHEAST DIVISION (29%) MIDEAST DIVISION (33%) LA 4%

Growth and Efficiency Improvement: 

Growth and Efficiency Improvement Long Haul Network Nova Scotia Bahamas Beckmann (TX) Three Rivers (KY) Lemon Springs (NC) N. Columbia (SC) Ruby (GA) Truck Quarries Berkeley (SC) Weeping Water (NE) Burning Springs (WV)

Magnesia Specialties: 

Magnesia Specialties

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%

Woodville Lime: 

Woodville Lime

Lime Division: 

Lime Division

Woodville Lime: 

Woodville Lime Record Production and Earnings in 2004 25,000 Tons of Incremental Capacity – Midyear 2005 Evaluating/Permitting $25 to $30 Million Expansion

Magnesia Chemicals: 

Magnesia Chemicals

Slide27: 

2004 Market Overview Other 6% 10% Plastics & Rubber Transformer Steel 6%

Slide28: 

Magnesia Chemicals Industrial 43%

Slide29: 

Magnesia Chemicals

Slide30: 

Magnesia Chemicals

Slide31: 

Magnesia Chemicals

Slide32: 

CALCIUM CHLORIDE FUEL ADDITIVES Magnesia Chemicals

Slide33: 

Magnesia Chemicals

Slide34: 

Manistee, MI Ludington, MI Magnesia Chemicals – MTD Pipeline, LLC Total Cost - $12M 27.5 mile pipeline

Slide35: 

Manistee Production Tons Refractories 50% Chemicals 50% Chemicals Chemicals 2000 210,000 Pre-Dow 110,000 Post Dow 180,000

Magnesia Chemicals - Growth: 

Magnesia Chemicals - Growth Cellguard™ Thioguard™ Magnesium Hydroxide Powder

Structural Composite Products: 

Structural Composite Products

Slide38: 

Structural Composites Light Weight High Strength Corrosion Resistant Long Life

Slide39: 

Union County, NC Composites

Slide40: 

First Bridge Deck Installation Completed July 1997 27 Installations Completed in 13 States 2 International Installations in Korea and Germany Composites

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Sparta, NC Composites

Focused Market Areas: 

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 Bulkheads Concrete Repair Collapsible Structures Containers Piping Emergency Dams Military Off-Shore Platforms Temporary Mats/ Roadways Composites

Slide43: 

Product Agreements Major Company Greenbriar Shredder Company Distributor Recreational vehicles Insulated rail cars Shredder truck bodies Flat panel products

Disciplined GrowthValue Creation: 

Disciplined Growth Value Creation

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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 or other SEC filings.   Further, while we may make presentations from time to time, please understand that we do not undertake any obligation to update any information contained in these materials.   Finally, any forward-looking statements are, by their nature, uncertain and dependent upon numerous contingencies, including the accuracy of the assumptions underlying the statements, which could cause actual results and events to differ materially from those indicated in such forward-looking statements.   If you have any questions or comments, please contact Investor Relations at 919-783-4658.   Thank you.