Martin operating profit rose 57% in 4th quarter

January 26, 1994|By Timothy J. Mullaney | Timothy J. Mullaney,Staff Writer

Martin Marietta Corp. said its fourth-quarter operating earnings rose 57 percent last year, a result that was slightly better than Wall Street analysts had anticipated.

The Bethesda-based defense contractor said it earned $118.7 million from operations, or $1.08 a share, in the three months that ended Dec. 31, up from $75.7 million in the same period of 1992. But net income, held down by a $17 million charge for an accounting change, was only $101 million, or 90 cents a share.

"Our combination with GE's aerospace businesses proved to be even more successful than anticipated," Martin Chief Executive Officer Norman R. Augustine said. "This 'merger of equals' fueled sales and earnings and superbly positioned us to meet not only an increasingly difficult defense environment but also to grow our approximately $3 billion in commercial, civil government and international sales realized in 1993."

"The bottom line is that it didn't vary that much from what I expected," said Byron Callan, an analyst with Merrill Lynch & Co.

The mean estimate of analysts who follow the company was that it would earn 93 cents a share in the quarter fully diluted, according to the Institutional Brokers Estimate System. The actual figures work out to 94 cents a fully diluted share.

"The earnings were a couple of cents above expectations," said Philip Friedman, who follows the company for Morgan Stanley & Co., the New York investment firm.

He said the company's fourth-quarter cash flow was especially encouraging, a development he said was due to the company's strong performance in managing working capital.

"The entire defense industry has done a great job at managing working capital," he said.

The company said that it generated $800 million in free cash flow last year, which it said was above expectations, but that it "was in part due to acceleration of previously anticipated 1994 cash flow."

For 1993, profit from operations was $450.3 million, or $3.80 a share, but a series of huge accounting charges depressed net income to $20.9 million. In 1992, net income was $345.4 million, or $3.60 a share.

Martin Marietta Corp.

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

.. .. .. .. .. .. .. .. ..Symbol .. .. ..Cls... .. .. ...Chg.

.. .. .. .. .. .. .. .. .. .ML .. .. .. .42 1/4 .. .. .. .. ..- 3/8

Period ended

12/31/93 .. .. .. .. ..4th qtr. .. .. ..Year ago .. .. .Chg.

Revenue .. .. .. .. .$3,187,656 .. .. .$1,449,615 ...+119.9%

Net Income .. .. .. ..$101,288* .. .. .. .$75,722 .. .+33.8%

Primary EPS .. .. .. .. .$0.90* .. .. .. ...$0.81 .. .+11.1%

.. .. .. .. .. .. .. ...12 mos. .. .. ...Year ago .. ...Chg.

Revenue .. .. .. .. ..$9,435,689 .. .. .$5,954,292 .. +58.5%

Net Income .. .. .. .$(24,400)** .. .. ...$345,400 .. .. .--

Primary EPS .. .. .. ..$(0.26)** .. .. .. ...$3.60 .. .. .--

* Includes $17 million, or 18 cents per common share, charge for accounting changes

** Includes $429.4 million, or $4.51 per common share, charge associated with post-employment benefits and retiree health benefits.

Figures in thousands (except per share data.)

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