Martin's profits increase 72% during 4th quarter

January 22, 1993|By Ted Shelsby | Ted Shelsby,Staff Writer

Martin Marietta Corp. announced yesterday a 72 percent jump in fourth-quarter earnings and a 10 percent boost in profits for last year.

Referring to the pending merger of Martin and General Electric Corp.'s aerospace division, Chairman and Chief Executive Officer Norman R. Augustine said the strong results meant the "new Martin Marietta" Corp. would be launched from a solid foundation.

The Bethesda-based defense and aerospace company agreed in November to acquire the GE unit for $3.05 billion.

If that transaction is approved, as is expected, it would nearly double the size of Martin, turning it into the world's largest defense electronics company.

Mr. Augustine credited the increased production of jet engine thrust reversers made at the company's Middle River plant for helping to offset a 9 percent decline in sales to the Defense Department last year.

Commercial sales increased nearly 13 percent, he said, "reflecting the initial recovery in our construction markets and continued market share gains for jet engine thrust reversers." Martin controls about 17 percent of that market.

In the most recent quarter, Martin reported net income of $75.7 million on sales of $1.45 billion. This compared with earnings of $44 million on $1.67 billion in sales for the same 1991 quarter.

Fourth-quarter 1991 results included an after-tax charge of $39 million, or 78 cents a share, related to the discontinuance of the International Light Metals operations.

For all of 1992, Martin earned $345.4 million, equal to $7.21 a share, on sales of $5.95 billion. The company posted a profit of $313.1 million, or $6.30 a share, from sales of $6.075 billion the year before.

Reporting on the operating results of its various units, the company said Aeronautics Group's sales were stable and operating earnings were up 7 percent last year.

The Electronics, Information & Missiles Group recorded a 7 percent decline in sales because of reduced deliveries of its LANTIRN night vision systems used on Air Force fighter planes. The group's earnings, the company said, were hurt by investments in the development of automated mail sorters for the U.S. Postal Service.

Materials Group sales and earnings were up about 10 percent for the fourth quarter and the year. The increase came because of continued strength in the group's gravel operations, as improvements in construction markets were magnified by increased output stemming from acquisitions and new production facilities.

Earnings from other operations, primarily those on behalf of the U.S. Department of Energy, also were up for the year, increasing by nearly 35 percent over 1991's results.

Martin....... ....... Ticker ..... Yesterday's

Marietta Corp. ...... Symbol ..... Cls. ... Chg.

..... ..... ...... ML ... ..... 71 1/2 . + 5/8

Period ended

Dec. 31 ........ 4th qtr. ..... Year ago ... Chg.

Revenue ....... $1,449,600 ... $1,670,400 .. 13.2%

Net Income ....... $75,700 ...... $44,000 ..+72%

Primary EPS ...... $1.61 ......... $0.89 ...+80.9%

...... ...... Year ...... Year ago ...... Chg.

Revenue ... $5,954,300 .. $6,075,400 .... 1.9%

Net Income... $345,400 .... $313,100 .. +10.3%

Primary EPS.. $7.21 ....... $6.30 ..... +14.4%

Figures in thousands (except per share data.)

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