Mcfarlane Lake Mining (NEO:MLM)
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Martin Marietta Materials Inc. (MLM), one of the largest U.S. building materials suppliers, warned Monday that 2009 earnings would fall below market expectations as the bulk of contracts awarded under the government's economic stimulus plan slipped into next year.

The company produces aggregates for highways and buildings and had counted on the federal program to counter weak private sector demand, only for a "longer-than-expected delay" in projects moving from contract award to actual construction.

Three-quarters of federal work isn't expected to start until next year, later than expected, a move that compounds a slower recovery in the broader U.S. economy and budget problems affecting state contract awards, as well as poor weather in the first half of the year.

Martin Marietta, which ranks second only to Vulcan Materials Co. (VMC) in the sector, said earnings per share this year would be in the range of $2.70 to $3.30, well below the $3.57 consensus among analysts and the $4.29 earned in 2008.

Its shares fell 5.3% to $73.00 in after-hours trading following the announcement.

"While we have seen an increase in bidding activity for infrastructure projects and awarding of projects to successful bidders by a significant number of states, we now believe that 25% of projects will commence later in the year with most of the remainder coming in 2010," said Chairman and CEO Stephen Zelnak Jr. in a statement.

The company expects aggregate industry volume to be down 13% to 18% this year, with prices between 3.5% and 5% higher than in 2008.

Highway construction accounts for about 40% of revenue, and the company forecast a significant increase in infrastructure work in 2010 as work expected to start in 2009 slipped back. Commercial construction volume is expected to remain depressed in 2010, though it forecast a moderate increase in "some portion of homebuilding".

-By Doug Cameron, Dow Jones Newswires; (312) 750 4135; doug.cameron@dowjones.com