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MARTIN MARIETTA NET EARNINGS INCREASE 36 PERCENT IN THIRD QUARTER

 BETHESDA, Md., Oct. 28 /PRNewswire/ -- Martin Marietta Corporation (NYSE: ML) today reported net earnings of $131.1 million for the third quarter 1993, an increase of 36 percent over the $96.1 million recorded in the third quarter of 1992. Sales of $2.46 billion represented a 59 percent gain over third quarter 1992 revenues of $1.54 billion. These results mark the second quarter to include the contribution of former GE Aerospace businesses.
 Primary earnings per share for the quarter -- reflecting a two-for- one stock split in the form of a stock dividend effective Sept. 30 -- of $1.21 were 19 percent higher than the split-adjusted $1.02 reported for the third quarter 1992. On a fully diluted basis, third quarter 1993 earnings of $1.04 per share compare favorably with the corresponding 1992 earnings of $1.02.
 "These financial results reflect the initial benefits we envisioned from the combination of Martin Marietta and GE Aerospace businesses earlier this year," noted Norman R. Augustine, the corporation's chairman and chief executive officer.
 "Operating margins of 10 percent, adjusted to exclude the effects of goodwill and intangibles amortization, remain among the highest in the industry. With the implementation of our comprehensive restructuring announced last month, we anticipate reducing our operating costs by $1.5 billion over the next five years, enhancing market synergies and improving financial results," Augustine said.
 "The progress to date is a consequence of the efforts of our employees at all levels throughout the `new' Martin Marietta. We currently are redoubling our efforts to understand the root causes of the flight failures our Space Group recently has encountered and already have begun taking steps that should reestablish the excellent record of mission success we have achieved over the years," he said.
 For the first nine months of 1993, net earnings before the cumulative effect of an accounting change for FAS 106 were $331.6 million, or $2.86 per fully diluted share, on sales of $6.2 billion, compared with net earnings of $269.7 million, or $2.80 per share, on sales of $4.5 billion for the same 1992 nine-month period. In the first quarter of 1993, the corporation adopted FAS 106, a one-time cumulative adjustment for retiree health benefits attributable to prior years service, incurring a $412 million after-tax, non-cash charge.
 During the quarter, Martin Marietta's work for the U.S. Department of Energy expanded by over one-third with the selection of the corporation by the federal government to manage the Sandia National Laboratories, headquartered in Albuquerque, N.M.
 The five-year contract reaffirms Martin Marietta's leadership position among DoE's management and operations contractors, with responsibility for 29,000 scientists, engineers and support personnel at six major facilities in four states. The corporation also operates and maintains two uranium enrichment production plants for the U.S. Enrichment Corporation, which assumed responsibility for enrichment operations from DoE on July 1.
 Martin Marietta Space Group recorded sales of over $750 million at margins over 9 percent. Illustrating the synergies made possible by the combination with GE Aerospace, NASA's Advanced Communications Technology Satellite, built by Astro Space, was successfully deployed by Space Shuttle astronauts using a Transfer Orbit Stage produced by Astronautics for Orbital Sciences Corporation. The group also received a firm order for three Intelsat VIII satellites, with options for additional spacecraft.
 Electronics Group again recorded sales in excess of $1 billion during the quarter, with margins just under 11 percent. Electronics & Missiles' LANTIRN program expanded its international market position during the quarter, with orders of over $270 million for deliveries to Saudi Arabia, Bahrain and Greece. Ocean, Radar & Sensor Systems continued successful development of the BSY-2 control system for the Seawolf submarine, receiving its highest customer award fee ever during the quarter.
 Information Group sales of $412 million were up slightly from second quarter, with margins improving to near 12 percent. The group expanded its backlog with $500 million in new orders, including $150 million for continued Consolidated Automated Support System production for the U.S. Navy, and a three-year $56-million contract for system engineering support to the Federal Aviation Administration.
 Services Group sales exceeded $150 million for the quarter, with margins in excess of 6 percent. Key orders included an $11.7-million subcontract to provide Kuwait with an aerostat radar, a system that flies on a tethered balloon. The award represents Martin Marietta's first sale of aerostat radars outside the United States.
 Aggregates achieved record sales in August, leading the Materials Group to a 51 percent earnings gain over last year's third quarter on sales that exceeded $125 million. In a strategic expansion in the rapidly growing Central Maryland market, Aggregates purchased the assets of Phoenix Inc.'s LeGore quarry outside Frederick.
 The average number of shares used in computing fully diluted third- quarter earnings was 125.8 million, and assumes the conversion of the corporation's Series A Convertible Preferred Shares (28.9 million common equivalent) and the treasury method of reflecting common stock equivalents of outstanding options (1.3 million shares). Average shares outstanding in the third quarter 1992 were 94.5 million.
 Reported backlog at the end of the quarter was $17.4 billion, over double the $8.6 billion reported at Sept. 30, 1992, and does not include equivalent sales of work to be performed for the Department of Energy, currently valued at $12.9 billion, or $3.1 billion in unexercised contract options.
 Total employment at Sept. 30, 1993, was 86,171, compared with 87,990 at the end of the second quarter. Employment increased 8,700 on Oct. 1 with the signing of the Sandia contract, increasing total employment to nearly 95,000.
 Martin Marietta Corporation
 Statement of Operations
 (in millions, except per share)
 Quarter Ended Six Months Ended
 Sept. 30, Sept. 30,
 1993 1992 1993 1992
 Net Sales $2,466.1 $1,548.8 $6,248.0 $4,504.7
 Cost of Sales,
 Other Costs, and
 Expenses 2,242.5 1,401.7 5,677.7 4,079.4
 Earnings from Operations 223.6 147.1 570.3 425.3
 Other Income and Expenses,
 net 17.1 9.9 39.0 20.4
 Total 240.7 157.0 609.3 445.7
 Interest Expense on Debt 33.6 14.3 77.7 45.0
 Earnings before Taxes
 on Income 207.1 142.7 531.6 400.7
 Taxes on Income 76.0 46.6 200.0 131.0
 Earnings before
 Cumulative Effect
 of Accounting Change $131.1 $ 96.1 $ 331.6 $ 269.7
 Cumulative Effect
 to Jan. 1, 1993, of
 Change in Accounting
 for Post-retirement
 Benefits Other Than
 Pensions -- -- (412.0) --
 Net Earnings (Loss) $ 131.1 $ 96.1 $ ( 80.4) $ 269.7
 Earnings (Loss)
 Per Share:
 Assuming no dilution:
 Before Cumulative
 Effect of Accounting
 Change $ 1.21 $ 1.02 $ 3.16 $ 2.80
 Cumulative Effect of
 Accounting Change -- -- (4.32) --
 Total $ 1.21 $ 1.02 $ (1.16) $ 2.80
 Assuming full dilution:
 Before Cumulative
 Effect of Accounting
 Change $ 1.04 $ 1.02 $ 2.86 $ 2.80
 Cumulative Effect
 of Accounting Change -- -- (A) --
 Total $ 1.04 $ 1.02 $ (A) $ 2.80
 Average Number of
 Common Shares
 Outstanding:
 Assuming no dilution 95.7 94.5 95.2 96.3
 Assuming full dilution 125.8 94.5 115.8 96.3
 (A) Anti-dilutive
 Martin Marietta Corporation
 Computation of Earnings (Loss) Per Common Share
 (in millions, except per share)
 Quarter Six Months
 Ended Sept. 30, Ended Sept. 30,
 1993 1992 1993 1992
 ASSUMING NO DILUTION:
 Earnings before Cumulative
 Effect of Accounting
 Change $ 131.1 $ 96.1 $ 331.6 $ 269.7
 Dividends on
 Preferred Stock 15.0 -- 30.3 --
 Earnings before Cumulative
 Effect of Accounting
 Change Applicable to
 Common Stock 116.1 96.1 301.3 269.7
 Cumulative Effect to
 Jan. 1, 1993, of Change
 In Accounting for
 Post-retirement
 Benefits Other
 Than Pensions -- -- (412.0) --
 Net Earnings (Loss)
 Applicable to
 Common Stock $ 116.1 $ 96.1 (110.7) 269.7
 Earnings (Loss) Per Share:
 Assuming no dilution:
 Before Cumulative
 Effect of
 Accounting Change $ 1.21 $ 1.02 $ 3.16 $ 2.80
 Cumulative Effect
 of Accounting Change -- -- (4.32) --
 Total $ 1.21 $ 1.02 $ (1.16) $ 2.80
 Average Number of
 Common Shares Outstanding: 95.7 94.5 95.2 96.3
 ASSUMING FULL DILUTION:
 Earnings before Cumulative
 Effect of Accounting
 Change $ 131.1 $ 96.1 $ 331.6 $ 269.7
 Cumulative Effect to
 Jan. 1, 1993, of Change
 in Accounting for
 Post-retirement Benefits
 Other than Pensions -- -- (412.0) --
 Net Earnings (Loss) 131.1 96.1 (80.4) 269.7
 Before Cumulative Effect
 of Accounting Change $ 1.04 $ 1.02 $ 2.86 $ 2.80
 Cumulative Effect of
 Accounting Change -- -- (A) --
 Total $ 1.04 $ 1.02 $ (A) $ 2.80
 Average Number of Common
 Shares Outstanding: 125.8 94.5 115.8 96.3
 Martin Marietta Corporation
 Condensed Balance Sheet
 (in millions)
 Sept. 30, Dec. 31,
 1993 1992
 Cash and cash equivalents $ 186.8 $ 239.6
 Other current assets 2,378.4 1,194.8
 Current liabilities (1,272.1) (586.2)
 Net working Capital $1,293.1 $848.2
 Property, plant, and equipment, net 1,666.0 1,257.1
 Cost in excess of net assets acquired 1,836.7 26.2
 Other intangibles 769.8 81.5
 Investments and other assets 644.9 800.4
 Noncurrent deferred income taxes 7.3 (297.3)
 Post-retirement benefits (734.2) (102.0)
 Other noncurrent liabilities (885.9) (194.2)
 Total $ 4,597.7 $2,419.9
 Long-term debt
 (excluding current maturities) $ 1,786.6 $ 474.7
 Shareowners' equity 2,811.1 1,945.2
 Total Capitalization $ 4,597.7 $2,419.9
 Firm Backlog was $17.4 billion at Sept. 30, 1993, compared with $8.6 billion at Sept. 30, 1992.
 -0- 10/28/93
 /CONTACT: Charles Manor, director of media relations, of Martin Marietta, 301-897-6258/
 (ML)


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

IH-DC -- DC007 -- 7813 10/28/93 10:55 EDT
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