Mexican cement producer Grupo Cementos de Chihuahua (GCC) reported a 4.9 per cent YoY rise in full year consolidated net sales to MXP7197.4m, as it reported improvements in construction activity in its domestic and USA markets from 2Q11.
However, operating income for the year fell 18.5 per cent YoY to MXP464.3m while EBITDA was down 9.8 per cent to MXP1359.4m.
Net sales in the 4Q11 reached MXP1996,7m, up 18 per cent over the same period of last year thanks to higher sales in both markets. EBITDA also showed a strong advance of 18.4 per cent YoY to MXP401m.At the end of the year, GCC made a prepayment of US$8m, achieving a 27.5 per cent reduction of its debt in the last 19 months.
In Mexico sales totaled MXP685.6m, a 20.4 per cent increase compared to sales of MXP569.3m in the same period a year ago. This was the result of a double-digit increase in cement and ready-mix volumes along with a more positive pricing scenario for concrete, the company said in a statement. Volumes continued to be driven by public infrastructure projects and the development of mining projects in the mountain region of the state of Chihuahua.
In the United States, sales in pesos rose 16.8 per cent to MXP128.1m due to peso depreciation against the dollar. Sales in dollar terms were down 1.3 per cent as a result of a cmbination of increasing ready-mix concrete volumes in the northern region of the country, a better pricing scenario in the ready-mix business and a slight decline in cement prices. The results reflect an increasing activity of the construction industry in the US northern region markets due to more favourable winter weather conditions, the company said.
