Rock Products

JUN 2019

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www.rockproducts.com ROCKproducts • June 2019 • 11 IN THE KNOW FAST FACT Aggregates shipments to the infrastructure market increased 2% as modestly improved weather allowed contractors to advance proj- ects earlier in the construc- ton season. Martin Marietta Materials Inc. reported record results for the first quarter ended March 31. Total reve- nues were $939 million versus $802 million in the first quarter of 2018. First-quarter heritage aggregates volume and pricing improved 12.5% and 4.0%, respectively. Shipments for the Mid-America Group heritage operations increased 18.4%, primarily driven by infrastructure, commercial and residential projects in the Carolinas. Heritage pricing improved 3.1% despite unfavorable product mix from increased shipments of lower-priced base stone in 2019. Shipments for the Southeast Group heritage operations increased 16.7%, reflecting the overall strength of the North Georgia and Florida markets. Heritage pricing improved 6.2%. The company's West Group shipments increased 6.3% as strong nonresi- dential construction activity in Texas more than offset weather-impacted Colorado shipments. Product and geographic mix limited West Group pricing growth to 2.7%. Inclusive of acquired opera- tions, aggregates volume and pricing improved 24.2% and 2.3%, respectively. Acquired operations shipped 3.5 million tons at selling prices that are approximately 15% below the company's average. Martin Marietta's first-quarter heri- tage aggregates shipments by end use are as follows (all comparisons are versus the prior-year quarter): Aggregates shipments to the infrastruc- ture market increased 2% as modestly improved weather, particularly in the Southeast, allowed contractors to advance transportation-related projects earlier in the construction season. Following more than a decade of underinvestment, management remains confident that infrastruc- ture demand is poised for meaningful growth. Funding provided by the Fixing America's Surface Transportation Act (FAST Act), combined with numerous state and local transportation initia- tives, has resulted in an acceleration in lettings and contract awards in key states, including Texas, Colorado, North Carolina, Georgia and Florida. For the quarter, the infrastructure market represented 33% of aggregates shipments, which is below the compa- ny's most recent 10-year average of 46% but consistent with first-quarter historical trends. Aggregates shipments to the non- residential market increased 33%, driven by both commercial and heavy industrial construction activity. The company continued to benefit from robust distribution center, warehouse, data center and wind turbine projects in key geographies, including Texas, the Carolinas, Georgia and Iowa. The nonresidential market represented 37% of first-quarter aggregates shipments. Aggregates shipments to the resi- dential market increased 8%, driven by weather-deferred homebuilding activity in the Carolinas, Georgia and Florida. Despite the recent slowdown in housing unit starts at the national level, the residential construction out- look across the company's geographic footprint remains positive for both Martin Marietta Achieves Record First-Quarter Results

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