Cementos Argos' revenues slip in 2018

Cementos Argos has posted its full-year 2018 results and reported that cement and ready-mix volumes fell in 4Q18 by three and seven per cent, respectively. The company pointed to unfavourable weather conditions in the USA and higher electricity and fuel costs in Colombia that were only partially offset by stronger sales in the Caribbean.

Full-year 2018 results
Cement volumes in 2018 slipped to 16.02Mt from 16.19Mt in 2017, down -1.1 per cent. 

Ready-mix volumes for the full year 2018 volumes slipped to 10.27Mt from 10.59Mt in 2017, down three per cent. Revenues in 2018 reached 8.418bn down from 8.533bn in 2017, a fall of -1.4 per cent.

USA
Cementos Argos was hit particularly hard in the USA.  Cement volumes fell to 5.74Mt in 2018, down from 5.87Mt in 2017, a fall of -2.1 per cent. US revenues in 2018 dipped to US$1.489m from US$1.541m in 2017, a fall of -3.4 per cent.

The US operations were challenged by heavy rainfall in Maryland, New Jersey, North Carolina, Rhode Island, Texas, Virginia and West Virginia. Ready-mix volumes in the USA fell to 6976Mm³ in 2018 down from 7.156Mm³ in 2017, a fall of -2.5 per cent.

Colombia 
Cement volumes in Colombia faired a little bette, reaching 5.154Mt for 2018, down from 5.256Mt in 2017, a decrease of -1.9 per cent. Ready-mix volumes totaled 2.6885Mm³ down from 2.992Mm³ in 2017, a drop of -3.6 per cent.Colombian revenues totalled COP2261bn down from COP270bn in 2017.

Caribbean and Central America
The Caribbean and Central American region was most buoyant for Cementos Argos in 2018, seeing cement volumes rise 1.1 per cent to 5.119Mt from 5.065Mt in 2017. Ready-mix volumes fell to 413Mm³  from 444Mm³ in 2017, down -6.9 per cent.

4Q18 results
Cement volumes dropped to 3.9Mt in 4Q18 from 4.02Mt in 4Q17. Ready-mix volumes reached 2.387Mm³ in 4Q18 down from 2.567Mm³ in 4Q17. Revenues slipped marginally to COP2.107bn in 4Q18 from COP2.108bn in 4Q17.

USA
Cementos Argos saw cement volumes reach 1.336Mt in 4Q18, down from 1.46Mt in 4Q17, a fall of nine per cent. The Martinsburg plant was closed for a period of 43 days in 4Q18. Revenues totalled US$342m in 4Q18, a significant decrease when compared with US$379m in 4Q17.

Colombia
Cement dispatches recovered in 4Q18 growing to 1.337Mt up from 1.241Mt in 4Q17, a rise of 7.7 per cent. Ready-mix volumes increased to 717Mm³ in 4Q18, up from 701Mm³ or by 2.2 per cent. Revenues totalled COP580bn in 4Q18 up from COP544bn in 4Q17.

Caribbean and Central America
Cement volumes reached 1.231Mt in 4Q18, down from 1.316Mt in 4Q17, a fall of -6.5 per cent. Ready-mix volumes reached 97Mm³ down from 105Mm³ in 4Q17, decreasing by -6.9 per cent. Revenues totalled US$138m in 4Q18 down from US$144m in 4Q17.

As of 31 December 2018, consolidated financial debt reached US$2189m.