Cementos de Chihuahua quarterly earnings hike 58% on higher sales in Mexico, US
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Grupo Cementos de Chihuahua (GCC) reported a 58.4% increase in earnings to US$ 71.3 million (EBITDA) during the fourth quarter of 2017, primarily due to higher cement and concrete sales in Mexico and the U.S. as well as a 6.2% cement price increase, according to a company statement to the Mexican Stock Exchange. Full-year EBITDA rose 32.3% to US$ 249.5 million.
Quarterly net sales totaled US$ 238.1 million, up 28% versus same three-month period of 2016. Full-year net sales of US$ 925.3 million represented a 23.6% hike compared to those of 2016.
According to the company, those results reflect a strong demand in both the U.S. and Mexico, as well as the successful integration of the operations acquired in Texas and New Mexico at the end of 2016.
"In the United States, sales increased 29.8% and accounted for 76% of Cementos Chihuahua's consolidated net sales. In Mexico, fourth-quarter sales increased 22.6% and accounted for 24% of net sales," said the statement.
"The segments with the most dynamism in the American market were the drilling of oil wells, the residential sector, as well as public construction. While in Mexico they were the demand of the mining sector, self-construction and the culmination of industrial projects, such as a brewing plant, compensated for the decrease in the public sector", the filing added.