Grupo Cementos de Chihuahua (GCC), a producer of cement and ready-mix concrete with operations in the United States and Mexico, saw its net income increase 39.3% in the third quarter of 2018 to US$ 42.8 million due to steady demand growth and favorable pricing environments in both countries.
However, such results were below most forecasts, including those of Bloomberg and Grupo Financiero Monex which expected profit increases of 48% and 57% respectively.
GCC generated US$ 83.6 million dollars in EBITDA in the third quarter – a new quarterly record. Free cash flow generation reached US$ 76.3 million in the quarter. Net sales totaled US$ 278.6 million, up 10.6%.
“Significant achievements in the quarter included operational integration of the Trident plant in Montana acquired in the second quarter; completion of construction of the Rapid City, South Dakota plant expansion and start of the tie-in process; reactivation of two idled kilns in Chihuahua to meet growing demand in the U.S. and Mexico; significant interest savings from the refinancing of bank debt and bonds; and the inclusion of GCC shares in the IPC blue-chip index of Mexican stocks,” said GCC’s Chief Executive Officer, Enrique Escalante in the third quarter briefing.