Grupo Cementos de Chihuahua announced its results for the third quarter of 2017, which reflect the successful integration of the operations acquired in Texas and New Mexico late last year as well as favourable pricing in the US and Mexico, and progress in implementing the company’s growth strategy.
Total sales increased 15.9 per cent YoY to MXN4.968bn (US$258.8m) in 3Q17 from MXN4.288bn. The company’s 3Q EBITDA saw a similar rise to MXN1.421bn, up 14.2 per cent from MXN1.245bn. Margins slipped from 29.0 per cent to 28.6 per cent YoY. The cement producer’s consolidated net income saw an 8.8 per cent drop from MXN601m to MXN548m in the 3Q17.
For the first nine months of 2017 GCC sales received a 24.3 per cent boost from MXN10.318bn in 9M16 to MXN12.83bn to 9M17 and EBITDA increased by 16 per cent to MXN2.135bn from MXN1.841bn in the year-ago period. The company’s margins improved slightly from 25.6 per cent to 25.8 per cent during this time. However, consolidated net income saw a 9.4 per cent decline as it fell from MXN1.097bn to MXN993m.
Enrique Escalante, CEO of GCC, commented: "We continue to be on track in terms of executing our business strategy. Our EBITDA margin in Mexico reached 40.8 per cent – the highest in the last decade – and our US margins reached 25.3 per cent, the second highest since the Great Recession. We have completed the initial integration of the Odessa, Texas plant and other operations in Texas and New Mexico acquired last November. In addition, the expansion of the South Dakota plant is proceeding on schedule and GCC is continuing to make improvements in all our operations."
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