Pricing actions propel Martin Marietta ahead in first quarter

By |  May 4, 2023

Logo: Martin Marietta

First-quarter aggregate shipments slipped slightly at Martin Marietta, but positive pricing momentum contributed to a company record in first-quarter gross profit in aggregates.

According to Martin Marietta, its quarterly gross profit in aggregates increased 131.7 percent to $238.1 million. Similarly, gross margin expanded to a first-quarter record of 26.1 percent, as strong pricing growth more than offset modestly lower shipments and increased costs.

Martin Marietta says first-quarter aggregate shipments dropped 0.8 percent, attributing the decline largely to historically wet weather in California that was partially offset by mild weather and strong demand in the Southeast.

Aggregate pricing increased 22.6 percent at Martin Marietta due to the cumulative effect of pricing actions from 2022 and Jan. 1 of this year.

Martin Marietta’s total first-quarter revenue attributable to aggregates was up 20.5 percent to $911.9 million.

“Our year is off to a remarkable start with record first-quarter results by nearly every measure, including continued world-class safety incidence rates,” says Ward Nye, chairman and CEO of Martin Marietta. “The cumulative effects of our 2022 and Jan. 1, 2023, pricing actions drove robust margin expansion despite continued inflationary pressure and modestly lower aggregates shipments.”

Martin Marietta continues to see solid near-term product demand reinforced by healthy customer backlogs across its coast-to-coast footprint.

“We expect recent legislation and the resulting enhanced level of public investment in these kinds of aggregates-intensive end-use projects to support continued strong demand for several years to come,” Nye says. “While single-family residential construction has slowed, builder sentiment has improved in Martin Marietta geographies as the single-family housing shortage continues to drive a base level of demand in our key Sun Belt markets. We also expect to see an uptick in residential activity as mortgage rates stabilize over the next several months.”

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About the Author:

Kevin Yanik is editor-in-chief of Pit & Quarry. He can be reached at 216-706-3724 or kyanik@northcoastmedia.net.

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