Martin Marietta Corp. reports it had lower sales and earnings in the fourth quarter but still closed 1990 with record sales and higher profits.
For the fourth quarter, the Bethesda-based company reports earnings of $57.2 million, $1.17 a share, on sales of $1.5 billion, compared with $73 million, or $1.41 cents a share, on sales of $1.6 billion in the same period in 1989.
For the year, earnings were $327.6 million, or $6.52 a share, on sales of $6.13 billion compared with $306.9 million, or $5.82 a share, on sales of $306.9 billion in 1989.
The company said the 1990 earnings reflect a fourth-quarter reserve of $78 million on a program awaiting a decision on whether to begin full production. The U.S. Army has put a two-year delay on the ADATS mobile air defense and anti-tank system program.
The reserve, which covers capitalized pre-production costs, is intended to insulate future earnings if the program is discontinued. If the system does go into production, it is anticipated that these costs will be recovered.
Norman R. Augustine, chairman and chief executive officer, said he expects the company to perform well in the coming year.
Looking back on 1990, he said the financial results and operating xTC achievements "confirm that our strategies have been successful in enabling our businesses to continue to perform well in a difficult environment."
The company said sales by the Astronautics Group rose by 11 percent in 1990, reflecting increased production of the company's Titan launch vehicles and other space-related activities. Sales by the newly configured Electronics, Information & Missiles Group were about even. Sales by the Materials Group were up 4 percent despite a slowdown in the construction and steel industries.