Martin Marietta Materials (NYSE:MLM) is a producer of sand, gravel, aggregates, and cement for the construction industry. During the year Martin’s aggregates volumes, pricing and incremental margins exceeded investor expectations as non-residential and public construction showed broad -based strength. The outlook for public volumes over the next several years improved as state Department of Transportation budgets expanded. Martin also increased its synergy target for the Texas Industries acquisition for the third time from the original $70 million to $120 million and sold their California Oro Grande cement operation for $420 million. The proceeds will be used toward their 20 million share repurchase program. A culmination of these positive events pushed Martin Marietta’s stock price above our estimate of intrinsic value and we exited our position in the third quarter.
From Wallace Weitz (Trades, Portfolio)'s 3Q 2015 commentary.
