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MARTIN MARIETTA NET EARNINGS INCREASE 25 PERCENT ON 65 PERCENT SALES GAIN IN SECOND QUARTER 1993

 BETHESDA, Md., July 20 /PRNewswire/ -- Martin Marietta Corporation (NYSE: ML) today reported second quarter 1993 net earnings of $124 million, a 25 percent increase over $99 million reported for second quarter 1992. Sales rose 65 percent to $2.6 billion in the quarter, compared with $1.6 billion in 1992.
 These results are the first to reflect the contribution of GE's aerospace businesses that were combined with Martin Marietta on April 2.
 Primary earnings per share for the quarter were $2.28, 11 percent higher than the $2.06 one year ago. On a fully diluted basis, earnings per share in the second quarter were $1.98 compared with the previous year's $2.06. The increase in shares outstanding on a fully diluted basis reflects the 14.5 million common shares associated with the $1 billion convertible preferred stock issued to GE in connection with the GE Aerospace transaction.
 For the first six months of 1993, net income before the cumulative effect of an accounting change for FAS 106 was $200 million on sales of $3.8 billion, compared with net income of $174 million on sales of $3.0 billion for the first half of 1992. The corporation adopted FAS 106, a one-time cumulative adjustment for retiree health benefits attributable to prior years, in the first quarter of 1993, incurring a $412-million, non-cash, after-tax charge. Fully diluted earnings per share for the first six months of 1993 prior to the accounting change were $3.62, vs. the previous year's six-month results of $3.57.
 "The enthusiasm and dedication of former GE Aerospace and Martin Marietta employees to create a truly integrated and efficient new Martin Marietta are reflected in these excellent financial results," said Norman R. Augustine, chairman and chief executive officer of the corporation.
 "With a firm backlog of $18.4 billion at the end of the second quarter -- almost double the $9.3 billion of one year ago -- we have a strong base upon which to realize continued gains from consolidation efficiencies," Augustine said.
 The Electronics Group, largest of the corporation's newly aligned six operating segments, achieved operating margins of nearly 9 percent on more than $1.2 billion in sales during second quarter 1993. Former GE Aerospace units contributed strongly to the group's sales and earnings, reflecting the performance of Ocean, Radar & Sensor Systems on a number of radar programs, and Government Electronics on the U.S. Navy AEGIS program. Electronics & Missiles recently was awarded a $141 million contract to begin production of the Hellfire II missile for the U.S. Army and Marine Corps.
 Space Group's sales of $850 million were up slightly from the previous year's quarter, reflecting contributions from Astro Space that more than offset anticipated revenue decreases on the group's Titan IV and External Tank programs. Operating margins were approximately 10 percent for the quarter. In June, a $429 million contract modification was received by Astronautics to adjust Titan IV production to more closely match the customer's newly revised launch schedule. This adjustment extends the existing Titan IV contract to mid-1998.
 The corporation's Information Group recorded sales of about $400 million with operating margins in the 7-8 percent range. The group made significant progress in demonstrating initial quantifiable cost efficiencies from the Martin Marietta-GE Aerospace transaction, combining voice communication services contracts to save almost 40 percent in annual costs, and identifying over $10 million in annual savings from the consolidation of computer processing facilities.
 Services Group, with sales of $140 million in the quarter, received a NASA contract valued at $250 million to deliver Science Payload Development, Engineering and Operations services at Johnson Space Center in Houston. The combination of the former GE Government Services and Martin Marietta Technical Services, Inc., already has resulted in the identification of more than $1 billion in new business opportunities.
 Reflecting the gradual upturn in infrastructure construction, the Materials Group recorded nearly $125 million in sales during the second quarter, an 11 percent increase over 1992. Aggregates sales and earnings were up strongly in the quarter over the previous year. Continued weakness in Magnesia Specialties markets, however, resulted in flat quarter-to-quarter earnings comparisons for the overall group.
 Energy Group, the manager and operator of U.S. Department of Energy facilities in Tennessee and Florida, saw earnings grow 14 percent over second quarter 1993. During the quarter a new wholly owned subsidiary, Martin Marietta Utility Services, was formed to support the U.S. Enrichment Corporation in producing the nation's enriched uranium at facilities in Ohio and Kentucky. This work previously was performed directly for the Department of Energy by the Energy Group.
 Free cash flow during the quarter, after taxes and dividends but prior to consideration paid to GE, was strongly positive at about $375 million. The corporation's balance sheet changed dramatically during the quarter, reflecting the impact of the $3.05-billion transaction with GE. Approximately $1.8 billion in goodwill was recorded at the corporate level associated with the transaction, along with $700 million in other intangibles, representing estimated fair- market value of certain assets. Despite a $1.4-billion increase in long-term debt in the quarter, and the earlier FAS 106 adjustment, the Corporation's debt-to-capitalization ratio at June 30, 1993, was a manageable 41 percent.
 Total employment at the end of second quarter 1993 was 87,990.
 MARTIN MARIETTA CORPORATION
 Statement of Operations
 (in millions, except per share)
 Quarter Ended Six Months Ended
 June 30, June 30,
 1993 1992 1993 1992
 Net Sales $2,613.3 $1,584.4 $3,781.9 $2,955.9
 Cost of Sales, Other
 Costs, and Expenses 2,391.2 1,427.1 3,435.2 2,677.7
 Earnings from
 Operations 222.1 157.3 346.7 278.2
 Other Income and Expenses,
 net 14.7 2.6 21.9 10.5
 236.8 159.9 368.6 288.7
 Interest Expense on Debt 32.9 15.2 44.1 30.7
 Earnings before Taxes
 on Income 203.9 144.7 324.5 258.0
 Taxes on income 79.8 45.7 124.0 84.4
 Earnings before Cumulative
 Effect of Accounting Change $124.1 $99.0 $200.5 $173.6
 Cumulative Effect to
 Jan. 1, 1993, of Change
 in Accounting for
 Post-retirement Benefits
 Other Than Pensions -- -- (412.0) --
 Net Earnings (Loss) $124.1 $99.0 $(211.5) $173.6
 Earnings (Loss) Per Share:
 Assuming no dilution:
 Before Cumulative Effect
 of Accounting Change $2.28 $2.06 $3.90 $3.57
 Cumulative Effect of
 Accounting Change -- -- (8.67) --
 $2.28 $2.06 $(4.77) $3.57
 Assuming full dilution:
 Before Cumulative Effect
 of Accounting Change $1.98 $2.06 $3.62 $3.57
 Cumulative Effect of
 Accounting Change -- -- (A) --
 $1.98 $2.06 $ (A) $3.57
 Average Number of Common
 Shares Outstanding:
 Assuming no dilution 47,638,176 47,967,256 47,527,042 48,642,442
 Assuming full dilution 62,664,083 47,967,256 55,336,431 48,642,442
 (A) Anti-dilutive
 MARTIN MARIETTA CORPORATION
 Computation of Earnings (Loss) Per Common Share
 (in millions, except per share)
 Quarter Ended Six Months Ende ?
 June 30, June 30,
 1993 1992 1993 1992
 Earnings before Cumulative
 Effect of Accounting
 Change $124.1 $99.0 $200.5 $173.6
 Cumulative Effect to
 Jan. 1, 1993 of Change
 in Accounting for Post-
 retirement Benefits Other
 Than Pensions -- -- (412.0) --
 Net Earnings (Loss) 124.1 99.0 (211.5) 173.6
 Dividends on Preferred
 Stock 15.3 -- 15.3 --
 Net Earnings (Loss)
 Applicable to Common
 Stock $108.8 $99.0 $(226.8) $173.6
 Earnings (Loss) Per Share:
 Assuming no dilution:
 Before Cumulative Effect
 of Accounting Change $2.28 $2.06 $3.90 $3.57
 Cumulative Effect of
 Accounting Change -- -- (8.67) --
 $2.28 $2.06 $(4.77) $3.57
 Assuming full dilution:
 Before Cumulative Effect
 of Accounting Change $1.98 $2.06 $3.62 $3.57
 Cumulative Effect of
 Accounting Change -- -- (A) --
 $1.98 $2.06 $ (A) $3.57
 Average Number of Common
 Shares Outstanding:
 Assuming no dilution 47,638,176 47,967,256 47,527,042 48,642,442
 Assuming full dilution 62,664,083 47,967,256 55,336,431 48,642,442
 (A) Anti-dilutive
 MARTIN MARIETTA CORPORATION
 Condensed Balance Sheet
 (in millions)
 June 30, Dec. 31,
 1993 1992
 Cash and cash equivalents $ 200.1 $ 239.6
 Other current assets 2,234.6 1,194.8
 Current liabilities (1,386.4) (586.2)
 Networking Capital $1,048.3 $ 848.2
 Property, plant and equipment, net 1,712.7 1,257.1
 Cost in excess of net assets acquired 1,847.5 26.2
 Other intangibles 793.1 81.5
 Investments and other assets 700.8 800.4
 Noncurrent deferred income taxes 30.1 (297.3)
 Post-retirement benefits (720.5) (102.0)
 Other noncurrent liabilities (914.3) (194.2)
 Total $4,497.7 $2,419.9
 Long-term debt (excluding current
 maturities) $1,789.6 $ 474.7
 Shareowners' equity 2,708.1 1,945.2
 Total Capitalization $4,497.7 $2,419.9
 Firm backlog was $18.4 billion at June 30, 1993, compared with $9.3 billion at June 30, 1992.
 -0- 7/20/93
 /CONTACT: Chip Manor of Martin Marietta, 301-897-6258/
 (ML)


CO: Martin Marietta Corporation ST: Maryland IN: ARO SU: ERN

DC-TW -- DC017 -- 6831 07/20/93 12:42 EDT
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