Page 154 - Martin Marietta - 2023 Proxy Statement

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

INTRODUCTORY OVERVIEW

Martin Marietta Materials, Inc. (the Company or Martin Marietta) is a natural resource‐based building materials company, with
2022 total revenues of $6.16 billion and 2022 net earnings from continuing operations attributable to Martin Marietta of $856.3
million. These results were achieved in part by supplying aggregates (crushed stone, sand and gravel) through its network of
approximately 350 quarries, mines and distribution yards in 28 states, Canada and The Bahamas. Martin Marietta also provides
cement and downstream products, namely ready mixed concrete, asphalt and paving services, in certain markets where the
Company has a leading aggregates position. Specifically, the Company has two cement plants in Texas, ready mixed concrete
operations in Arizona, California and Texas, and asphalt operations in Arizona, California, Colorado and Minnesota. Paving
services are offered in California and Colorado. The Company also has one cement plant, related cement distribution terminals
and ready mixed concrete operations in California that are classified as assets held for sale and reported as discontinued
operations as of and for the years ended December 31, 2022 and 2021.

The Company’s heavy‐side building materials are used in infrastructure, nonresidential and residential construction projects.
Aggregates are also used in agricultural, utility and environmental applications and as railroad ballast. The aggregates, cement,
ready mixed concrete and asphalt and paving product lines are reported collectively as the “Building Materials” business.
b
As more fully discussed in the Consolidated Strategic Objectives section, geography is critically important for the Building
Materials business. The Company conducts its Building Materials business through two reportable segments, organized by
geography: East Group and West Group. The East Group, consisting of the East and Central divisions, provides aggregates and
asphalt products. The West Group is comprised of the Southwest and West divisions and provides aggregates, cement,
downstream products and paving services. Further, the following five states accounted for 64% of the Building Materials
business 2022 total revenues: Texas, Colorado, North Carolina, Minnesota and California.

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