Investor Stock Updates: United Parcel Service, Inc. (NYSE:UPS) and Martin Marietta Materials, Inc. (NYSE:MLM)

609

By David Scouts on July 29, 2014 Company

United Parcel Service, Inc. (NYSE:UPS) reported Q2 earnings that missed the Street target but surpassed expectations on revenues despite a charge related to the transfer of retirement liabilities.

The company reported adjusted diluted earnings per share of $1.21, up from $1.13 in Q2 2013 but missing analyst estimates of $1.25. Total revenues of $14.26 billion were up from $13.50 billion in Q2 2013 and beat analyst projections of $14.10 billion. Results for the quarter were negatively impacted by the transfer of post-retirement liabilities for certain Teamster employees to defined contribution healthcare plans, resulting in an after-tax charge of $665 million.

The company has lowered expectations for adjusted diluted earnings per share to be in a range of $4.90 to $5.00, down from previous guidance at the low end of a range of $5.05 to $5.30. The lowering of guidance is due in part to plans to increase 2014 operating expense for capacity and peak related projects to a total of $175 million. The Street is at $5.08 per share.

“We are encouraged by the strong demand for UPS solutions around the world,” said Kurt Kuehn, UPS chief financial officer. “As a result of this accelerated growth and our preparation for peak season, we are making investments in new capabilities and network capacity to ensure we meet customer expectations. These initiatives will increase operating expense this year, but will provide financial benefits for years to come.”

Martin Marietta Materials, Inc. (NYSE:MLM) has announced Q2 earnings that topped the Street view on both EPS and total revenues and has increased full-year volume guidance on aggregates product line shipping.

The company reported adjusted earnings per diluted share of $1.34, up from $0.89 in Q2 2013 and beating analyst estimates of $1.31 for the quarter. Total revenues of $669.2 million were up from $561.3 million in Q2 2013 and beat analyst projections of $624.65 million.

“Second-quarter 2014 results reflect strong operational performance and demonstrate our ability to significantly grow overall earnings and expand margins as construction activity begins to recover from historically low levels,” said Ward Nye, Chairman, President and CEO of Martin Marietta. ” Aggregates product line shipments increased in all geographic groups, led by a 22% improvement in the West Group. Aggregates product line pricing increases for the quarter were also widespread, leading to an overall increase of 5% compared with the prior-year period. The powerful combination of increasing aggregates volume and pricing growth, along with quarterly record net sales for Specialty Products, resulted in record consolidated net sales of $602 million.”

Based on performance through the first half of the year and key economic indicators, the company has raised its full-year aggregates product line volume guidance to a range of 6% to 8% over 2013 levels from 4% to 5% previously.