Page 171 - Martin Marietta - 2023 Proxy Statement

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

The decrease in gross profit in Magnesia Specialties was driven by lower demand from domestic steel industry customers for
dolomitic lime products and higher energy and contract services costs.
Corporate gross profit includes intercompany royalty and rental revenue and expenses, depreciation and unallocated
operational expenses excluded from the Company’s evaluation of business segment performance.
Aggregates. The average selling price per ton for aggregates was $16.68 and $15.08 for 2022 and 2021, respectively.
Aggregates average selling price increases compared to the prior year are as follows:

years ended December 31 2022 2021
East Group 10.5% 1.6%
West Group 11.9% 3.1%
Total aggregates operations 1 10.6% 2.1%
1. Total aggregates operations include acquisitions from the date of acquisition and divestitures through the date of disposal.

Aggregates pricing improved 10.6%, or 10.0% on a mix‐adjusted basis, compared with 2021. The East Group reported an
increase of 10.5%, or 9.3% on a mix‐adjusted basis, and West Group pricing increased 11.9%, or 11.4% on a mix‐adjusted basis,
compared with 2021, reflecting multiple price actions implemented throughout the year.
The following presents aggregates shipments for each reportable segment of the Building Materials business:

years ended December 31
Tons (in millions) 2022 2021
East Group 124.0 128.5
West Group 83.7 72.7
Total aggregates operations 1 207.7 201.2
1. Total aggregates operations include acquisitions from the date of acquisition and divestitures through the date of disposal.
Aggregates shipments sold to external customers and internal tons used in other product lines are as follows:
.
years ended December 31
Tons (in millions) 2022 2021
Tons to external customers 192.3 184.2
Internal tons used in other product lines 15.4 17.0
Aggregates tons 207.7 201.2

Aggregates volume variance compared to the prior year by reportable segment is as follows:
years ended December 31 2022 2021
East Group (3.5%) 8.3%
West Group 15.2% 7.2%
Total aggregates operations 1 3.3% 7.9%
1. Total aggregates operations include acquisitions from the date of acquisition and divestitures through the date of disposal.

Aggregates volume increased in 2022, benefiting from contributions from acquired operations and solid construction activity
across all three primary end‐use markets.
Cement, Ready Mixed Concrete, Asphalt and Paving Services. Average selling prices for cement, ready mixed concrete and
asphalt are as follows:

years ended December 31 2022 2021
Cement – per ton $ 142.83 $ 122.14
Ready mixed concrete – per cubic yard $ 128.15 $ 115.14
Asphalt – per ton $ 61.77 $ 49.96

Annual Report ♦ Page 67