Martin Marietta Materials, hurt by erratic weather and reduced spending on infrastructure projects, reported disappointing second-quarter earnings this morning that missed Wall Street estimates.
The Raleigh company, which produces rock, gravel and other materials used to build roads, subdivisions and commercial buildings, had sales of $426.7 million for the quarter that ended June 30, down from $442.8 million in the same period in 2010.
The company reported earnings of 78 cents per share for the quarter, compared to $1.18 per share in the second quarter of 2010.
That was below the $1.07 per share expected by Wall Street analysts who cover the company. Analysts also expected sales to come in at $513 million for the quarter.
Martin Marietta shipments declined by 9.3 percent in the quarter compared to a year ago, although pricing was up 2.6 percent.
Much of Martin Marietta's business is tied to residential, commercial and government construction projects, which makes it a barometer of the broader economy.
The company's fortunes are also heavily dependent on the weather.
Ward Nye, Martin Marietta's CEO, said in a release that the company was hurt by rainy weather in Iowa, Indiana and Ohio, which reported the wettest April in more than a century.
The company also is likely to be hurt by the ongoing efforts in Washington to trim the federal budget.
The last long-term federal highway bill expired in 2009, and it remains unclear when a new multiyear bill will be adopted, given concerns about the deficit in Washington.
"While there is bipartisan Congressional agreement that infrastructure is a key and essential government priority, there is heightened sensitivity to all government spending due to the national deficit," Nye said in a release.
Martin Marietta shares closed at $74.81 on Monday. The stock is down 15 percent over the last year.