Martin Marietta sees record revenue in 1Q22

Martin Marietta’s building materials business has reported record 1Q22 products and services revenues of US$1077m, up 25.7 per cent YoY. According to the company, across all end-use markets, the business saw healthy underlying demand with price increases in all product lines.  

Texas cement shipments advanced by 10 per cent YoY during the quarter, supported by robust product demand and tight supply throughout the Texas Triangle. Pricing increased by 11.8 per cent, benefiting from the carry-over of 2021 mid-year price increases and improving demand for higher-priced specialty oil-well cement products. The cement product gross margin expanded by 630 basis points to 20.3 per cent compared to the 1Q21, which was negatively impacted by incremental costs and inefficiencies from the Texas Deep Freeze. In March 2022, the company announced the sale of its Redding cement plant, related cement distribution terminals and 14 California-based ready-mixed concrete plants to CalPortland Company. The transaction is expected to close in the 2H22.  

First-quarter organic aggregates shipments advanced by 2.5 per cent YoY, reflecting growing public and private product demand at the onset of the construction season. Organic pricing expanded by 6.5 per cent, or 4.6 per cent of a mix-adjusted basis. Including acquired operations, total aggregates shipments grew by 13.4 per cent, while pricing improved by 5.6 per cent. East Group total shipments increased 1.1 per cent on the back of infrastructure construction activity in the Southeast and Midwest. West Group shipments improved by 32.7 per cent, driven by strong underlying demand in Texas and shipments from acquired operations that more than offset Colorado’s weather-related shipment shortfalls.  

 Organic ready-mixed concrete shipments fell slightly over the 1Q22, despite healthy product demand, driven by the timing of project completions. Organic pricing grew 8.2 per cent following the implementation of annual price increases early in the year. Inclusive of the acquired Arizona concrete operations, ready-mix shipments and pricing increased 14.8 per cent and 7.7 per cent, respectively. 

Seasonal winter weather conditions in Colorado contributed to a 3.1 per cent decrease in organic asphalt shipments, while organic pricing increased 5.8 per cent. Including contributions from the acquired West Coast operations, total asphalt shipments and pricing increased 509.1 per cent and 27.2 per cent, respectively.