Rock Products

SEP 2018

Rock Products is the aggregates industry's leading source for market analysis and technology solutions, delivering critical content focusing on aggregates-processing equipment; operational efficiencies; management best practices; comprehensive market

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12 • ROCK products • September 2018 IN THE KNOW and tight con- tractor labor markets pose challenges for more efficient throughput. Specifically, sub- optimal railroad p e r f o r m a n c e , limited truck availability and contrac- tor capacity limitations, including their notable employee shortages, muted the company's overall second-quarter volume growth. That said, as capital and increased wages flow into the con- struction sector, the company expects these temporary bottlenecks will abate, allowing supply and demand to reach equilibrium. Inclusive of acquired operations, aggre- gates product revenues increased 15.1 percent for the quarter, reflecting volume growth of 11.3 percent and pricing growth of 3.5 percent. Heritage volume and pricing improved 3.4 per- cent and 4.4 percent, respectively. Chairman, President and CEO of Martin Marietta Ward Nye stated, "Our record-setting second-quarter results, which were driven by increased ship- ments, pricing improvements and growth initiatives, extend Martin Marietta's lengthy track record of operational excellence, disciplined execution of our strategic plan and shareholder value creation. Underlying product demand and customer back- logs remain strong across our markets, with notable growth in Texas, North Carolina, Georgia and Iowa. In addition, our cement operations benefitted from the combination of strong demand and a tight supply environment, resulting in double-digit volume growth and a 680-basis-point improvement in prod- uct gross margin for the quarter. "We are also pleased with the per- formance of our acquired Bluegrass Materials (Bluegrass) operations, which contributed $42 million in product revenues at anticipated mar- gins comparable to our Mid-Atlantic and Southeast operations," Nye said. "This strategic acquisition is accretive to our shareholders and positions us to meaningfully enhance future per- formance as the eastern United States recovers from below mid-cycle aggre- gates demand. We are also on track Ward Nye FAST FACT During the quarter, aggre- gates shipments to the company's three primary end-use markets increased, demonstrating the breadth of the overall construction recovery. 715-472-2111 ∙ ∙ Livewire ® Screen Media Hybrid screens available in four different openings to maximize output. Molded rubber strips that hold high strength wires in place providing better screening action and more open area. Designed to boost productivity by reducing costly blinding and pegging problems while also delivering superior wear life. A Brand You've Known Since 1965... The Brand You Can Trust Invest in our quality Profit from our solutions TM

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