Martin Marietta says Q2 earnings constrained by impact of wet weather

theflyonthewall.com

The company said, "Net earnings increased 12%, despite being constrained by the impact of wet weather, particularly in the midwestern and southeastern United States...While it’s difficult to isolate all of the quarter’s weather impact, the Company knows the effect was at least three-fold. First, with respect to potential lost sales, the Company estimates that the precipitation reduced shipment volumes between 1.5M-1.7M tons, lowering net earnings by up to 11c per diluted share. Second, though more difficult to estimate than the sales component, throughput challenges created by wet weather significantly reduced operational productivity. Finally, lower production volumes led to an underabsorption of fixed costs."

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