GCC 3Q results, Mexico

GCC 3Q results, Mexico
Published: 28 October 2009

Grupo Cementos de Chihuahua, S.A.B. de C.V. announced consolidated results for the quarter ended September 30, 2009.

Consolidated net sales rose 6.9% and 7.9% in the third quarter and first nine months of 2009 respectively, compared to the same periods of last year.

Similarly, EBITDA rose 9.5% and 3.5% in the third quarter and nine months over the year ago periods. EBITDA margin was 32.5% in the third quarter, higher than in the same period of last year. Free cash flow was 73.8% and 169.2% greater than in the third quarter and first nine months of 2008, respectively.

ales in the United States registered a 14.2% increase in the third quarter of 2009 compared to the same period of last year, as a result of a better pricing environment and the depreciation of the peso against the dollar.

Sales in Bolivia rose 54.6% in the third quarter of 2009 compared to the same period of last year, as a result of greater demand in the DIY and public sectors.

Operating income in the third quarter of 2009 was 3.3% greater than in the same period of last year.

EBITDA in the third quarter of 2009 was 9.5% higher than in the year ago period. In addition, EBITDA margin was 0.8 percentage points greater than in the third quarter of 2008. In the first nine months of 2009, EBITDA rose 3.5% compared to the same period of last year.

Free cash flow totaled $886.2 million pesos and rose 73.8% in the third quarter of 2009. In the first nine months of 2009, free cash flow was $1,326.2 million pesos and rose 169.2%.

The depreciation of the peso against the dollar continues to have a mixed effect on the Company’s results. Due to dollar-denominated sales in the revenue mix (approximately 60%), the depreciation of the peso will have a positive effect on GCC`s results in the long term.