Page 185 - Martin Marietta - 2025 Proxy Statement

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
Further, increasedhighway construction funding pressures resulting from eitherfederalorstate issues could result in reduced
constructionspending, which could inturnaffect profitability. Cement is subjecttocyclical supplyand demand andprice
fluctuations.
The Company’s principalbusinessservescustomers in construction markets. This concentrationcould increase the riskof
potentiallossesoncustomerreceivables;however, payment bonds normally posted on public projects,togetherwithlienrights
on private projects, mitigate the riskof uncollectible receivables. Thelevel of demand in the Company’s end-use markets,
production levels andthe management of production costs will affect theoperating leverage of the Building Materials business
and, therefore, profitability. Production costs inthe BuildingMaterials businessare also sensitivetoenergyand raw material
prices, both directly and indirectly. Diesel fuel,natural gas, coal andother consumableschange productioncosts directly
through consumptionor indirectly byincreased energy-related input costs, such as steel,explosives, tiresand conveyor belts.
Fluctuating diesel fuel pricing alsoaffectstransportationcosts,primarily through fuelsurcharges inthe Company’slong-haul
distributionnetwork. The Magnesia Specialtiesbusiness issensitive to changes indomesticsteel capacity utilizationas wellas
the absolute priceand fluctuation inthe cost of naturalgas.
Transportation in the Company’s long-haulnetwork, particularly the supply of railcarsand locomotive powerand condition of
rail infrastructureto movetrains, affectsthe Company’sefficienttransportationof aggregatesproducts in certain markets,
mostnotably Texas, theSoutheast andthe GulfCoast. In addition, availability ofrailcarsand locomotivesaffectsthe Company’s
movementof essential dolomiticlime for magnesia chemicalstoboththe Company’splant in Manistee, Michigan, and its
customers. Theavailability of trucks, driversand railcarstotransport the Company’s products,particularlyin markets
experiencing high growth and increased demand, is also a riskand pressuresthe associated costs.

Allof the Company’sbusinessesare also subjectto weather-related risksthatcan significantlyaffect production schedules and
profitability. The first and fourthquartersare most adverselyaffected by winter weather. Hurricane andcyclone activity in the
AtlanticOcean,Pacific Oceanand GulfCoastgenerally is most active duringthe second, thirdand fourth quarters.
In addition to the foregoing,otherfactorsthatcould causeactual results to differ materially from the forward-looking
statementsinthisAnnual Reportinclude but arenot limited to thoselistedabove in Item 1, Business – Competition, Item 1A,
Risk Factors, and Note A: Accounting Policies and Note N: Commitments and Contingencies of the Notes to Financial Statements
of theaudited consolidated financialstatements included inthisForm10-K.
You should consider these forward-looking statementsinlight of risk factorsdiscussed in the Company’s Annual Report on
Form10-K for theyearended December31, 2024 and other filings made with theSEC.All of the Company’s forward-looking
statementsshouldbeconsidered inlight of these factors. Inaddition,other risksand uncertaintiesnot presently known to the
Company or that the Company considers immaterialcould affect theaccuracy of its forward-looking statements, or adversely
affect or be material to the Company.All forward-looking statementsare made as of thedateoffilingorpublicationand we
assume no obligationtoupdate anysuch forward-looking statements.

2024 Annual Report ♦ Page 77