Page 170 - Martin Marietta - 2023 Proxy Statement

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)

Total Revenues
The following table presents revenues data for the Company and its reportable segments by product line:
years ended December 31
(in millions) 2022 2021
Building Materials business:
roducts and services
ast Group:
ggregates $ 2,152.3 $ 2,011.0
Asphalt 192.3 167.9
Less: Interproduct revenues (20.5) (17.3)
East Group Total 2,324.1 2,161.6
West Group:
Aggregates 1,353.7 1,047.5
Cement 602.3 494.5
Ready mixed concrete 951.3 1,145.8
Asphalt and paving services 583.1 346.3
Less: Interproduct revenues (362.0) (385.7)
West Group Total 3,128.4 2,648.4
Products and services 5,452.5 4,810.0
Freight 404.2 305.3
Total Building Materials business 5,856.7 5,115.3
Magnesia Specialties:
Products 278.0 274.7
Freight 26.0 24.0
Total Magnesia Specialties 304.0 298.7
Total consolidated revenues $ 6,160.7 $ 5,414.0

Gross Profit
The following table presents gross profit and gross margin data for the Company by product line:
2022 2021
years ended December 31 %of %of
(dollars in millions) Amount Revenues Amount Revenues
Building Materials business:
Aggregates $ 980.3 28.0% $ 904.8 29.6%
Cement 204.4 33.9% 157.0 31.8%
Ready mixed concrete 69.6 7.3% 95.6 8.3%
Asphalt and paving services 81.9 10.6% 79.2 15.4%
Products and services 1,336.2 24.5% 1,236.6 25.7%
Freight 2.0 NM 3.3 NM
Total Building Materials business 1,338.2 22.8% 1,239.9 24.2%
Magnesia Specialties:
Products and services 95.5 34.4% 110.4 40.2%
Freight (4.6) NM (3.9) NM
Total Magnesia Specialties 90.9 29.9% 106.5 35.6%
Corporate (5.8) NM 2.0 NM
Total consolidated gross profit $ 1,423.3 23.1% $ 1,348.4 24.9%

The increase in Building Materials business gross profit in 2022 compared with 2021 was primarily attributable to pricing growth
and the accretive impacts of acquisitions, which more than offset historically high cost inflation and the divestiture of the
Colorado and Central Texas ready mixed concrete operations on an absolute basis. The Building Materials business gross margin
was negatively impacted by inflationary cost increases throughout the year. While pricing increases were implemented during
the year, the full benefits are achieved over time as existing contracts are replaced with new contracts with updated pricing.

Page 66 ♦ Annual Report