UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported)           October 30, 2007          

Martin Marietta Materials, Inc.

(Exact Name of Registrant as Specified in Its Charter)

North Carolina

(State or Other Jurisdiction of Incorporation)

1-12744		56-1848578
(Commission File Number)		(IRS Employer Identification No.)

2710 Wycliff Road, Raleigh, North Carolina		27607
(Address of Principal Executive Offices)		(Zip Code)

(919) 781-4550

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

     o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

     o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

     o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

     o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

Item 2.02 Results of Operations and Financial Condition.

On October 30, 2007, the Corporation announced financial results for the third quarter ended September 30, 2007. The press release, dated October 30, 2007, is furnished as Exhibit 99.1 to this report and is incorporated by reference herein.

Item 7.01 Regulation FD Disclosure.

On October 30, 2007, the Corporation announced financial results for the third quarter ended September 30, 2007. The press release, dated October 30, 2007, is furnished as Exhibit 99.1 to this report and is incorporated by reference herein. Additional information about the quarter, and the Corporation’s use of non-GAAP financial measures, which is available on the Corporation’s Web site at www.martinmarietta.com by clicking the heading “Financials”, in the “Investors” section and then clicking the quick link “Non-GAAP Financial Measures”.

The Corporation will host an online Web simulcast of its third-quarter 2007 earnings conference call on Tuesday, October 30, 2007. The live broadcast of the Corporation’s conference call will begin at 1:30 p.m., Eastern Time, on October 30, 2007. An online replay will be available approximately two hours following the conclusion of the live broadcast. A link to these events will be available at the Corporation’s Web site at www.martinmarietta.com. For those investors without online web access, the conference call may also be accessed by calling 913-981-5522, confirmation number 6335084. Additional information about the Corporation’s use of non-GAAP financial measures, as well as certain other financial or statistical information the Corporation may present at the conference call, will be provided on the Corporation’s Web site.

Item 9.01 Financial Statements and Exhibits.

(c) Exhibits

99.1

Press Release dated October 30, 2007, announcing financial results for the third quarter ended September 30, 2007.

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		MARTIN MARIETTA MATERIALS, INC.
		(Registrant)
Date: October 30, 2007		By:		/s/ Anne H. Lloyd
				Anne H. Lloyd, Senior Vice President and Chief Financial Officer

EXHIBIT INDEX

Exhibit No.		Description
99.1		Press Release dated October 30, 2007, announcing financial results for the third quarter ended September 30, 2007.

EXHIBIT 99.1

FOR IMMEDIATE RELEASE		Contact:		Anne H. Lloyd Senior Vice President, Chief      Financial Officer and Treasurer (919) 783-4660 www.martinmarietta.com

MARTIN MARIETTA MATERIALS, INC.
ANNOUNCES RECORD THIRD-QUARTER RESULTS

QUARTERLY EARNINGS PER SHARE UP 28%

RALEIGH, North Carolina (October 30, 2007) — Martin Marietta Materials, Inc. (NYSE:MLM), today announced record net sales, net earnings and earnings per share for the third quarter and nine months ended September 30, 2007. Notable items for the quarter were:

	•		Earnings per diluted share of $2.12, up 28% from the prior-year quarter;
	•		Net sales of $548.9 million, up 4% compared with the prior-year quarter;
	•		Consolidated operating margin excluding freight and delivery revenues of 24.9%, up 290 basis points over the prior-year quarter;
	•		Heritage aggregates product line pricing up 8.6%, offsetting a 4% volume decline; and
	•		Specialty Products earnings from operations up 76% from the prior-year quarter.

Management Commentary
Stephen P. Zelnak, Jr., Chairman and CEO of Martin Marietta Materials, stated, “We are extremely pleased with our record third quarter results, particularly given the current economic environment. Heritage aggregates pricing increased 8.6%, contributing to a 200-basis-point increase in our heritage aggregates product line gross margin excluding freight and delivery revenues and a 290-basis-point improvement in consolidated operating margin excluding freight and delivery revenues. Our record results were achieved despite a greater than 4% decline in aggregates volume and an increase in production costs resulting from operating leverage and inventory control. Pricing improvements continued to hold in the Aggregates business. As expected, the rate of growth in aggregates pricing slowed during the quarter in response to the effect of more limited 2007 mid-year price increases, which reflects reduced demand over the past six quarters. However, even with weaker demand, the rate of pricing improvement continues to be well above historic norms for the business, which reflects the intrinsic value of well-located, zoned and permitted aggregates reserves.

“While weather continued to affect performance in the West Group during the quarter, the Group finished the quarter with volumes up over 2% and showed significant earnings improvement over the prior-year period. July 2007 was the third wettest July in recorded weather history in Texas and the historic rainfall affected both shipments and operations. However, as dry, hot days began to outnumber

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October 30, 2007

wet days in mid-August and September, volume for commercial and infrastructure projects began to return to normal levels. The Raleigh-Durham and Greensboro, North Carolina areas, as well as Virginia, had positive volume growth for the quarter. Volumes declined in most other regions of the country, reflecting the continued diminishment of residential construction coupled with a slowing in the rate of growth of commercial construction, notably office and retail space.

“Our profits also reflected strict adherence to our disciplined control of costs. For the quarter ended September 30, 2007, selling, general and administrative expenses was $36.4 million versus $35.3 million in the 2006 period and, as a percentage of net sales, declined slightly to 6.6%.

“The overall effective tax rate was 25.9% for the quarter compared with 27.6% in the prior year’s period. As expected, the effective tax rate was reduced by the impact of discrete tax events during the quarter related to the settlement of certain tax liabilities. These discrete events contributed $0.12 per diluted share to earnings compared with $0.06 per diluted share in the third quarter of 2006. We expect the effective tax rate for the full year to be approximately 30%.

“Cash flow, as measured by net cash provided by operating activities, increased 30% to $273 million for the nine-month period ended September 30, 2007, which supported capital expenditures of $197 million for internal growth projects, acquisition of additional reserve properties, as well as share repurchases. We expect to commence work on a major plant project in the Augusta, Georgia, area during the fourth quarter with completion expected in early 2009. This project, which is the first of a series along the geological fall line in Georgia, will increase capacity at Augusta from 2 million to 6 million tons annually and is expected to reduce production costs. Capital expenditures are expected to be $260 million for the year, up from the previous estimate of $235 million due to the purchase of 50 new barges for $24 million, which originally was expected to be financed through operating leases. Year-to-date, additional borrowings, coupled with available free cash flow, have been used to acquire 3.6 million shares of our common stock. There were no shares repurchased in the third quarter as we were investigating the possibility of some attractive acquisition growth opportunities. We continue to focus on deploying capital, and using reasonable but prudent leverage, in a manner that supports our overriding objective of creating shareholder value. Our priorities remain consistent in that we will continue to invest in internal, organic growth opportunities that improve operational performance or extend our mineral reserve base, opportunistically invest in strategic, value-creating acquisitions, and return available free cash flow to shareholders through sustainable dividends and share repurchase programs while maintaining an investment grade rating.

2007 Outlook
“Based upon our strong year-to-date performance, we continue to have a positive outlook for the remainder of the year. Aggregates product line pricing is expected to increase 10% to 11% for the year; however, aggregates shipments are becoming more difficult to estimate. We currently expect aggregates volume to decrease 6% to 8% for the year with the degree of decline predicated on continued correction in the residential construction market, in addition to slower growth in commercial construction. We believe certain commercial construction, notably office and retail space, is exhibiting a cautionary pause in activity in some areas as developers digest the impact of the current credit markets on construction and development plans. Capacity-related, industrial and distribution-related construction remains in a solid growth pattern. Infrastructure spending is expected to remain positive, although rising construction and materials prices have made projects more costly.

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“Our Specialty Products segment, which includes magnesia chemicals, dolomitic lime and targeted activity in structural composites, is expected to contribute $31 million to $33 million in pretax earnings in 2007 compared with $22 million in 2006. We expect the magnesia chemicals business to continue to grow and the demand for dolomitic lime from the steel industry to be down slightly.

“Against this backdrop, we currently expect net earnings per diluted share for the fourth quarter to range from $1.37 to $1.72 and our range for the year is $6.10 to $6.45.”

Risks To Earnings Expectations
The 2007 estimated earnings range includes management’s assessment of the likelihood of certain risk factors that will affect performance within the range. The level of aggregates demand in the Corporation’s end-use markets and the management of production costs will affect profitability in the Aggregates business. Risks to the earnings range are primarily volume-related and include a greater-than-expected drop in demand during the fourth quarter as a result of the continued decline in residential construction, a pause in commercial construction as developers digest the impact of the current credit markets on construction and development plans, delays in infrastructure projects, or some combination thereof. Further, increased highway construction funding pressures in North Carolina, Texas and South Carolina can affect profitability. Opportunities to reach the upper end of the earnings range depend on the aggregates product line demand exceeding expectations. Production costs in the Aggregates business is sensitive to production levels, energy prices, the costs of repair and supply parts, and the start-up expenses for the large-scale plant project in Weeping Water, Nebraska, coming on line in 2007. The availability of transportation in the Corporation’s long-haul network, particularly the availability of barges on the Mississippi River system and the availability of rail cars and locomotive power to move trains, affects the Corporation’s ability to efficiently transport material into certain markets, most notably Texas and the Gulf Coast region. The business is also subject to weather-related risks that can significantly affect production schedules and profitability. In prior years, fourth quarter results have been adversely affected by hurricane activity and the early onset of winter in the Corporation’s northern and midwestern states. In 2006, 74% of net sales for the Aggregates business were generated in the southern tier of the United States, and, accordingly, the Corporation is exposed to significant disruption in profitability from hurricane activity. Risks to earnings outside of the range include a significant increase in volume beyond current expectations and/or a precipitous drop in demand as a result of economic events outside of the Corporation’s control. In addition to the impact on residential and commercial construction, the Corporation is exposed to risk in its earnings expectations from tightening credit markets, through the interest cost related to its $225,000,000 Floating Rate Senior Notes due in 2010 and the availability and interest cost related to its commercial paper program, which is rated A-2 by Standards & Poor’s and P-2 by Moody’s. Commercial paper of $76,000,000 was outstanding at September 30, 2007.

Consolidated Financial Highlights
Net sales for the quarter were $548.9 million, a 4% increase over the $527.4 million recorded in the third quarter of 2006. Earnings from operations for the third quarter of 2007 were $136.9 million compared with $116.0 million in 2006. Net earnings of $90.3 million, or $2.12 per diluted share, represented a quarterly record and increased 19% versus 2006 third-quarter net earnings of $76.2 million, or $1.65 per diluted share.

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October 30, 2007

Net sales for the first nine months of 2007 were $1.497 billion compared with $1.467 billion for the year-earlier period. Year-to-date earnings from operations increased 15% to $331.5 million in 2007 versus $288.4 million in 2006. The Corporation posted an after-tax gain on discontinued operations of $1.0 million in 2007 and an after-tax loss of $0.2 million in 2006. For the nine-month period ended September 30, net earnings were $206.2 million, or $4.73 per diluted share, in 2007 compared with net earnings of $183.0 million, or $3.93 per diluted share, in 2006.

Business Financial Highlights
Net sales for the Aggregates business for the third quarter were $509.7 million, a 4% increase over 2006 third-quarter sales of $491.5 million. Aggregates pricing at heritage locations was up 8.6% while volume decreased 4.1%. Including acquisitions and divestitures, aggregates pricing increased 8.5% and aggregates volume declined 4.3%. Earnings from operations for the quarter were $134.2 million in 2007 versus $121.0 million in the year-earlier period. Year-to-date net sales for the Aggregates business were $1.380 billion versus $1.353 billion in 2006. Earnings from operations on a year-to-date basis were $333.6 million in 2007 compared with $291.8 million in 2006. For the nine-month period ended September 30, 2007, heritage aggregates pricing increased 12.1%, while volume was down 8.8%. Including acquisitions and divestitures, aggregates average selling price increased 12.0% while volume declined 9.0%.

Specialty Products’ third-quarter net sales of $39.2 million increased 9% over prior-year net sales of $35.9 million. Earnings from operations for the third quarter were $9.0 million compared with $5.1 million in the year-earlier period. For the first nine months of 2007, net sales were $117.5 million and earnings from operations were $24.5 million compared with net sales of $113.7 million and earnings from operations of $19.1 million for the first nine months of 2006.

Conference Call Information
The Corporation will host an online Web simulcast of its third-quarter 2007 earnings conference call later today (October 30, 2007). The live broadcast of Martin Marietta Materials’ conference call will begin at 1:30 p.m. Eastern Time. An online replay will be available approximately two hours following the conclusion of the live broadcast. A link to these events will be available at the Corporation’s Web site: www.martinmarietta.com.

For those investors without online web access, the conference call may also be accessed by calling 913-981-5522, confirmation number 6335084.

Martin Marietta Materials is a leading producer of construction aggregates and a producer of magnesia-based chemicals and dolomitic lime. For more information about Martin Marietta Materials, refer to the Corporation’s Web site at www.martinmarietta.com.

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October 30, 2007

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MLM Reports Third-Quarter Results
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October 30, 2007

MARTIN MARIETTA MATERIALS, INC.
Unaudited Statements of Earnings
(In millions, except per share amounts)

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2007				2006				2007				2006
Net sales		$	548.9			$	527.4			$	1,497.3			$	1,466.6
Freight and delivery revenues			71.3				74.3				179.4				204.0
Total revenues			620.2				601.7				1,676.7				1,670.6
Cost of sales			381.5				378.1				1,057.7				1,078.5
Freight and delivery costs			71.3				74.3				179.4				204.0
Cost of revenues			452.8				452.4				1,237.1				1,282.5
Gross profit			167.4				149.3				439.6				388.1
Selling, general and administrative expenses			36.4				35.3				119.0				108.6
Research and development			0.2				0.2				0.6				0.5
Other operating (income) and expenses, net			(6.1	)			(2.2	)			(11.5	)			(9.4	)
Earnings from operations			136.9				116.0				331.5				288.4
Interest expense			17.2				10.1				45.1				29.8
Other nonoperating (income) and expenses, net			(1.3	)			0.2				(5.1	)			(2.2	)
Earnings before taxes on income			121.0				105.7				291.5				260.8
Income tax expense			31.1				29.2				86.3				77.6
Earnings from continuing operations			89.9				76.5				205.2				183.2
Discontinued operations:
Gain (Loss) on discontinued operations, net of related tax expense (benefit) of $0.4, $(0.2), $0.9 and $0.0, respectively			0.4				(0.3	)			1.0				(0.2	)
Net Earnings		$	90.3			$	76.2			$	206.2			$	183.0
Net earnings (loss) per share:
Basic from continuing operations		$	2.15			$	1.69			$	4.78			$	4.02
Discontinued operations			0.01				(0.01	)			0.02				—
		$	2.16			$	1.68			$	4.80			$	4.02
Diluted from continuing operations		$	2.11			$	1.66			$	4.71			$	3.93
Discontinued operations			0.01				(0.01	)			0.02				—
		$	2.12			$	1.65			$	4.73			$	3.93
Dividends per share		$	0.345			$	0.275			$	0.895			$	0.735
Average number of shares outstanding:
Basic			41.8				45.3				42.9				45.6
Diluted			42.5				46.1				43.6				46.5

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October 30, 2007

MARTIN MARIETTA MATERIALS, INC.
Unaudited Financial Highlights
(In millions)

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2007				2006				2007				2006
Net sales:
Aggregates Business:
Mideast Group		$	193.3			$	183.7			$	524.7			$	496.0
Southeast Group			119.1				119.7				352.4				348.7
West Group			197.3				188.1				502.7				508.2
Total Aggregates Business			509.7				491.5				1,379.8				1,352.9
Specialty Products			39.2				35.9				117.5				113.7
Total		$	548.9			$	527.4			$	1,497.3			$	1,466.6
Gross profit:
Aggregates Business:
Mideast Group		$	79.1			$	76.3			$	220.9			$	191.2
Southeast Group			25.0				22.8				85.4				64.9
West Group			51.6				46.7				102.1				108.9
Total Aggregates Business			155.7				145.8				408.4				365.0
Specialty Products			11.7				7.9				32.8				27.3
Corporate			—				(4.4	)			(1.6	)			(4.2	)
Total		$	167.4			$	149.3			$	439.6			$	388.1
Selling, general and administrative expenses:
Aggregates Business:
Mideast Group		$	10.9			$	10.4			$	34.2			$	32.3
Southeast Group			6.4				5.9				19.1				17.7
West Group			11.5				10.7				34.5				33.6
Total Aggregates Business			28.8				27.0				87.8				83.6
Specialty Products			2.6				2.7				7.9				8.1
Corporate			5.0				5.6				23.3				16.9
Total		$	36.4			$	35.3			$	119.0			$	108.6
Earnings (Loss) from operations:
Aggregates Business:
Mideast Group		$	68.6			$	67.2			$	188.9			$	165.3
Southeast Group			19.6				17.0				68.2				48.3
West Group			46.0				36.8				76.5				78.2
Total Aggregates Business			134.2				121.0				333.6				291.8
Specialty Products			9.0				5.1				24.5				19.1
Corporate			(6.3	)			(10.1	)			(26.6	)			(22.5	)
Total		$	136.9			$	116.0			$	331.5			$	288.4
Depreciation		$	35.7			$	32.8			$	105.5			$	95.1
Depletion			1.3				2.4				3.4				4.6
Amortization			0.7				0.9				2.2				3.0
		$	37.7			$	36.1			$	111.1			$	102.7

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MARTIN MARIETTA MATERIALS, INC.
Balance Sheet Data
(In millions)

		September 30,				December 31,				September 30,
		2007				2006				2006
		(Unaudited)				(Audited)				(Unaudited)
ASSETS
Cash and cash equivalents		$	26.4			$	32.3			$	22.8
Accounts receivable, net			312.3				242.4				293.7
Inventories, net			285.3				256.3				244.5
Other current assets			66.9				61.3				47.3
Property, plant and equipment, net			1,405.7				1,295.5				1,279.4
Other noncurrent assets			40.9				37.1				62.0
Intangible assets, net			584.5				581.5				583.0
Total assets		$	2,722.0			$	2,506.4			$	2,532.7
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current maturities of long-term debt, commercial paper and line of credit		$	78.1			$	126.0			$	137.6
Other current liabilities			238.5				189.1				222.1
Long-term debt (excluding current maturities)			1,050.7				579.3				579.8
Other noncurrent liabilities			367.4				358.0				331.1
Shareholders’ equity			987.3				1,254.0				1,262.1
Total liabilities and shareholders’ equity		$	2,722.0			$	2,506.4			$	2,532.7

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October 30, 2007

MARTIN MARIETTA MATERIALS, INC.
Unaudited Statements of Cash Flows
(In millions)

		Nine Months Ended
		September 30,
		2007				2006
Net earnings		$	206.2			$	183.0
Adjustments to reconcile net earnings to cash provided by operating activities:
Depreciation, depletion and amortization			111.1				102.7
Stock-based compensation expense			16.4				9.7
Excess tax benefits from stock-based compensation			(20.2	)			(11.3	)
Gains on divestitures and sales of assets			(9.2	)			(6.8	)
Deferred income taxes			1.7				(3.3	)
Other items, net			(2.6	)			(3.4	)
Changes in operating assets and liabilities, net of effects of acquisitions and divestitures:
Accounts receivable, net			(70.3	)			(68.7	)
Inventories, net			(29.8	)			(21.9	)
Accounts payable			6.8				(3.8	)
Other assets and liabilities, net			62.7				33.5
Net cash provided by operating activities			272.8				209.7
Investing activities:
Additions to property, plant and equipment			(196.9	)			(212.6	)
Acquisitions, net			(12.2	)			(3.0	)
Proceeds from divestitures and sales of assets			17.0				26.9
Proceeds from sale of investments			—				25.0
Railcar construction advances			—				(32.1	)
Repayment of railcar construction advances			—				32.1
Net cash used for investing activities			(192.1	)			(163.7	)
Financing activities:
Net borrowings (repayments) of long-term debt			346.5				(0.5	)
Net borrowings of commercial paper and line of credit			75.5				12.2
Debt issuance costs			(0.8	)			—
Change in bank overdraft			(8.3	)			2.4
Dividends paid			(39.0	)			(33.8	)
Repurchases of common stock			(495.2	)			(112.6	)
Issuances of common stock			14.5				21.1
Excess tax benefits from stock-based compensation			20.2				11.3
Net cash used for financing activities			(86.6	)			(99.9	)
Net decrease in cash and cash equivalents			(5.9	)			(53.9	)
Cash and cash equivalents, beginning of period			32.3				76.7
Cash and cash equivalents, end of period		$	26.4			$	22.8

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October 30, 2007

MARTIN MARIETTA MATERIALS, INC.
Unaudited Operational Highlights

		Three Months Ended								Nine Months Ended
		September 30, 2007								September 30, 2007
		Volume				Pricing				Volume				Pricing
Volume/Pricing Variance (1)
Heritage Aggregates Product Line: (2)
Mideast Group			(6.7	%)			12.9	%			(8.4	%)			15.5	%
Southeast Group			(10.5	%)			11.7	%			(12.4	%)			15.6	%
West Group			2.3	%			3.5	%			(6.8	%)			6.1	%
Heritage Aggregates Operations			(4.1	%)			8.6	%			(8.8	%)			12.1	%
Aggregates Product Line (3)			(4.3	%)			8.5	%			(9.0	%)			12.0	%
		Three Months Ended								Nine Months Ended
		September 30,								September 30,
Shipments		2007				2006				2007				2006
Heritage Aggregates Product Line: (2)
Mideast Group			19,254				20,633				51,279				55,982
Southeast Group			11,331				12,656				33,229				37,918
West Group			21,141				20,671				53,309				57,205
Heritage Aggregates Operations			51,726				53,960				137,817				151,105
Acquisitions			135				—				238				—
Divestitures (4)			17				245				144				690
Aggregates Product Line (3)			51,878				54,205				138,199				151,795

(1)		Volume/pricing variances reflect the percentage increase (decrease) from the comparable period in the prior year.
(2)		Heritage Aggregates product line excludes volume and pricing data for acquisitions that have not been included in prior-year operations for the comparable period and divestitures.
(3)		Aggregates product line includes all acquisitions from the date of acquisition and divestitures through the date of disposal.
(4)		Divestitures include the tons related to divested aggregates product line operations up to the date of divestiture.

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October 30, 2007

MARTIN MARIETTA MATERIALS, INC.
Non-GAAP Financial Measures
(Dollars in millions)

Gross margin as a percentage of net sales and operating margin as a percentage of net sales represent non-GAAP measures. The Corporation presents these ratios calculated based on net sales, as it is consistent with the basis by which management reviews the Corporation’s operating results. Further, management believes it is consistent with the basis by which investors analyze the Corporation’s operating results given that freight and delivery revenues and costs represent pass-throughs and have no profit mark-up. Gross margin and operating margin calculated as percentages of total revenues represent the most directly comparable financial measures calculated in accordance with generally accepted accounting principles (“GAAP”). The following tables present the calculations of gross margin and operating margin for the three and nine months ended September 30, 2007 and 2006 in accordance with GAAP and reconciliations of the ratios as percentages of total revenues to percentages of net sales:

Gross Margin in Accordance with Generally Accepted		Three Months Ended								Nine Months Ended
Accounting Principles		September 30,								September 30,
		2007				2006				2007				2006
Gross profit		$	167.4			$	149.3			$	439.6			$	388.1
Total revenues		$	620.2			$	601.7			$	1,676.7			$	1,670.6
Gross margin			27.0	%			24.8	%			26.2	%			23.2	%

Gross Margin Excluding Freight and Delivery Revenues		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2007				2006				2007				2006
Gross profit		$	167.4			$	149.3			$	439.6			$	388.1
Total revenues		$	620.2			$	601.7			$	1,676.7			$	1,670.6
Less: Freight and delivery revenues			(71.3	)			(74.3	)			(179.4	)			(204.0	)
Net sales		$	548.9			$	527.4			$	1,497.3			$	1,466.6
Gross margin excluding freight and delivery revenues			30.5	%			28.3	%			29.4	%			26.5	%

Operating Margin in Accordance with Generally Accepted		Three Months Ended								Nine Months Ended
Accounting Principles		September 30,								September 30,
		2007				2006				2007				2006
Earnings from operations		$	136.9			$	116.0			$	331.5			$	288.4
Total revenues		$	620.2			$	601.7			$	1,676.7			$	1,670.6
Operating margin			22.1	%			19.3	%			19.8	%			17.3	%

Operating Margin Excluding Freight and Delivery Revenues		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2007				2006				2007				2006
Earnings from operations		$	136.9			$	116.0			$	331.5			$	288.4
Total revenues		$	620.2			$	601.7			$	1,676.7			$	1,670.6
Less: Freight and delivery revenues			(71.3	)			(74.3	)			(179.4	)			(204.0	)
Net sales		$	548.9			$	527.4			$	1,497.3			$	1,466.6
Operating margin excluding freight and delivery revenues			24.9	%			22.0	%			22.1	%			19.7	%

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MLM Reports Third-Quarter Results
Page 12
October 30, 2007

MARTIN MARIETTA MATERIALS, INC.
Non-GAAP Financial Measures (continued)
(Dollars in millions)

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2007				2006				2007				2006
Earnings Before Interest, Income Taxes, Depreciation, Depletion and Amortization (EBITDA) (1)		$	176.7			$	151.3			$	449.6			$	393.1

(1)

EBITDA is a widely accepted financial indicator of a company’s ability to service and/or incur indebtedness. EBITDA is not defined by generally accepted accounting principles and, as such, should not be construed as an alternative to net income or operating cash flow. For further information on EBITDA, refer to the Corporation’s Web site at www.martinmarietta.com.

A reconciliation of Net Cash Provided by Operating Activities to EBITDA is as follows:

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2007				2006				2007				2006
Net Cash Provided by Operating Activities		$	132.8			$	95.8			$	272.8			$	209.7
Changes in operating assets and liabilities, net of effects of acquisitions and divestitures			(11.9	)			17.5				30.6				60.9
Other items, net			7.1				(1.1	)			13.9				15.1
Income tax expense, continuing and discontinued operations			31.5				29.0				87.2				77.6
Interest expense			17.2				10.1				45.1				29.8
EBITDA		$	176.7			$	151.3			$	449.6			$	393.1

The ratio of Consolidated Debt-to-Consolidated EBITDA, as defined, for the trailing twelve months is a covenant under the Corporation’s $250 million five-year revolving credit agreement. Under the agreement, the Corporation’s ratio of consolidated debt-to-consolidated EBITDA, as defined, for the trailing twelve months can not exceed 2.75 to 1.00 as of the end of any fiscal quarter, with certain exceptions related to qualifying acquisitions, as defined.

The following presents the calculation of Consolidated Debt-to-Consolidated EBITDA, as defined, for the trailing twelve months at September 30, 2007. For supporting calculations, refer to Corporation’s Web site at www.martinmarietta.com.

		Twelve-Month Period
		October 1, 2006 to
		September 30, 2007
Earnings from continuing operations		$	267.8
Add back:
Interest expense			55.7
Income tax expense			116.4
Depreciation, depletion and amortization expense			149.2
Stock-based compensation expense			20.1
Deduct:
Interest income			(2.5	)
Consolidated EBITDA, as defined		$	606.7
Consolidated Debt at September 30, 2007		$	1,128.8
Consolidated Debt-to-Consolidated EBITDA, as defined, at September 30, 2007 for the trailing twelve-month EBITDA			1.86

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