Rock Products

MAR 2019

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20 • ROCK products • March 2019 www.rockproducts.com IN THE KNOW Aggregates shipments to the infra- structure market decreased 5 percent, as large public projects in North Car- olina, South Carolina and Texas were delayed by weather. Public construc- tion projects, once awarded, are seen through to completion. Thus, delays from weather or other factors typically serve to extend the duration of the con- struction cycle for the company's single largest end-use market. The company is encouraged by the acceleration of state lettings and con- tract awards in key states, including Texas, Colorado, North Carolina, Geor- gia and Florida. As state Departments of Transportation (DOTs) and contractors continue to address labor constraints and the broader industry benefits from further regulatory reform, management remains confident that infrastructure demand will continue to improve, driven by funding provided by the Fixing America's Surface Transporta- tion Act (FAST Act) and numerous state and local transportation initiatives. Aggregates shipments to the infrastruc- ture market comprised 36 percent of fourth-quarter aggregates volumes. For the full year, the infrastructure market represented 39 percent of aggregates shipments, remaining below the com- pany's most recent 10-year average of 46 percent. Ward Nye, chairman, president and CEO of Martin Marietta, stated, "Our industry-leading safety and record financial performance in 2018 can be best summarized as challenges faced and challenges met. We produced record results for the seventh consecu- tive year and concluded 2018 with the best heritage safety performance in our company's history. These accomplish- ments demonstrate our commitment to operational excellence and the suc- cessful execution of our strategic plan. Full-year revenues increased 7 percent to a record $4.2 billion and adjusted EBITDA (Earnings Before Interest, Taxes, and Depreciation and Amortiza- tion) increased 9 percent to an all-time high of $1.1 billion, driven by a modest improvement in heritage Building Materials shipments, solid pricing gains and value-enhancing acquisitions. We also delivered record net earnings and earnings per diluted share (after adjust- ing for the one-time benefit in 2017 of the 2017 Tax Act on earnings metrics) for the full year. " Eve n m o re noteworthy, we extended our lengthy his- tory of record p e r f o r m a n c e without mean- ingful shipment growth from our heritage Build- ing Materials business," Nye stated. "Weather, contractor capacity and logistics disruptions challenged both our company and the industry through- out the year, resulting in aggregates volumes, on a comparable basis, that remained only modestly above 2010 trough levels. Our proven ability to suc- cessfully manage short-term external disruptions makes us highly optimis- tic about our business and ability to achieve both continued profitability growth and shareholder value creation in 2019 and beyond. "Looking ahead, we expect 2019 to be another record year for Martin Marietta," Nye said. "The fundamentals of our business and underlying demand trends remain strong across our geographic footprint. We believe the combination of continued private-sector strength and the long-awaited arrival of increased public-sector activity in our key geog- raphies will drive shipment, pricing and profitability growth in 2019. Leading employment and population growth across the Sunbelt should continue to bolster private-sector construc- tion activity. Further, after a decade of underinvestment, infrastructure activ- ity is poised for meaningful growth as evidenced by an acceleration in public lettings and contract awards in our key states of Texas, Colorado, North Caro- lina, Georgia and Florida. These trends, combined with an improved pricing outlook, underscore the strength of our markets and the near-term growth trajectory of our business." Nye concluded, "We are confident in Martin Marietta's outlook given our leading market positions, disciplined pricing strategy and proven execution of our strategic plan. For 2019, we anticipate construction growth in our key regions to outpace the nation as a whole, driven by attractive employment growth, population trends and favorable momentum from state Departments of Transportation. Additionally, wide- spread customer optimism and growing contractor backlogs support increased demand for our construction materi- als. With both the ability and capacity to meet future market demand, Martin Marietta remains committed to world- class attributes across our business – including safety, efficiency and operational excellence – and is well-po- sitioned to deliver enhanced long-term value for our shareholders." Summit Materials Inc. announced that for the three months ended Dec. 29, 2018, the company reported net loss attributable to Summit Inc. of $19.2 million, compared to net income attrib- utable to Summit Inc. of $43.0 million in the comparable prior-year period. For the year ended Dec. 29, 2018, the company reported net income attrib- utable to Summit Inc. of $33.9 million compared to net income attributable to Summit Inc. of $121.8 million in the comparable prior-year period. Summit's net revenue increased 1.0 percent in the fourth quarter of 2018 compared to the comparable Summit Materials Optimistic Despite Losses in 2018 Ward Nye

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