Page 74 - 2019 Annual Report
P. 74

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)
           Products and services gross margin by reportable segment and total products and services consolidated gross margin are as follows:
            years ended December 31                                                 2019              2018
              Mid-America Group                                                     36.3%            32.3%
              Southeast Group                                                       25.6%            19.0%
              West Group                                                            20.1%            19.2%
            Total Building Materials Business                                       25.9%            23.2%
            Magnesia Specialties                                                    39.8%            38.3%
            Total Consolidated                                                      26.7%            24.2%

           Gross profit (loss) by product line is as follows:
            years ended December 31
            (in millions)                                                           2019             2018
            Building Materials Business:
               Aggregates                                                       $        807.9      $     608.4
               Cement                                                                    143.4            126.2
               Ready Mixed Concrete                                                       78.8             74.2
               Asphalt and Paving Services                                                50.7             51.3
              Products and Services                                                    1,080.8            860.1
              Freight                                                                     (0.2 )            0.2
            Building Materials Business                                                1,080.6            860.3

            Magnesia Specialties:
              Products and Services                                                       99.4            102.9
              Freight                                                                     (4.0 )            (4.2 )
            Magnesia Specialties                                                          95.4             98.7
            Corporate                                                                      3.0              7.6
            Total Consolidated Gross Profit                                     $      1,179.0      $     966.6

           Products and services gross margin by product line and total products and services consolidated gross margin are as follows:
            years ended December 31                                                  2019             2018
              Aggregates                                                            29.3%             25.7%
              Cement                                                                32.7%             32.5%
              Ready Mixed Concrete                                                   8.3%             7.7%
              Asphalt and Paving                                                    17.2%             19.8%
            Total Building Materials Business                                       25.9%             23.2%
            Magnesia Specialties                                                    39.8%             38.3%
            Total Consolidated                                                      26.7%             24.2%

           The following presents a rollforward of the Company’s consolidated gross profit:
            years ended December 31
            (in millions)                                                            2019              2018
            Consolidated gross profit, prior year                                $        966.6      $      971.9

            Aggregates:
               Pricing                                                                    111.5              89.7
               Volume                                                                     139.3              41.9
                                   1
               Operational performance                                                     (51.3 )         (125.5 )
            Change in aggregates gross profit                                             199.5               6.1
            Cement and downstream operations products and services                         21.1             (19.0 )
            Magnesia Specialties products                                                  (3.4 )             8.8
            Corporate                                                                      (4.6 )             0.7
            Freight                                                                        (0.2 )            (1.9 )
            Change in consolidated gross profit                                           212.4              (5.3 )
            Consolidated gross profit, current year                              $       1,179.0      $     966.6

           1   Inclusive of cost increases/decreases, product and geographic mix and other operating impacts


           Annual Report  ♦  Page 72                                            Celebrating 25 Years as a Public Company
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