GCC reports 3Q 2008 Results

GCC reports 3Q 2008 Results
Published: 23 October 2008

Grupo Cementos de Chihuahua announced consolidated results for the quarter ended September 30, 2008.

In the third quarter of 2008, the company generated double-digit sales growth in dollar terms compared to the third quarter of 2007. This growth reflected the integration of acquisitions made in the first quarter of the year, revenues generated by the new cement plan in Pueblo, Colorado, and strong performance in Bolivia. In addition, GCC registered an increase in EBITDA in dollar terms compared to the third quarter of 2007 due to higher revenues and the implementation of our cost and expense reduction programme.

Dollar sales in the third quarter of 2008 rose 13.9% compared to the third quarter of 2007. Growth by market was as follows:  United States + 16.5%, Mexico + 1.5%, Bolivia + 50.0%.

EBITDA in dollars in the third quarter of 2008 increased 6.8% compared to the third quarter of 2007. Dollar sales in the third quarter of 2008 were 15.5% higher compared to the second quarter of 2008. Operating income in dollars in the third quarter of 2008 rose 29.5% in comparison with the second quarter of 2008. EBITDA in dollars in the third quarter of 2008 was 20.8% higher than in the second quarter of 2008.

Net sales in the third quarter of 2008 rose 5.1% from the year ago period, totaling $2,597.3 million pesos. This increase was the result of higher sales in the United States and Bolivia, which more than offset the decline in Mexico.

In the United States, sales in dollar terms rose 13.9% compared to the third quarter of 2007 as a result of the integration of new acquisitions, the start-up of the cement plant in Pueblo, Colorado, and a better pricing environment. Due to the appreciation of the peso against the dollar in the third quarter of 2008 compared to the same period of 2007, sales in peso terms rose 8.8%.

In Mexico, sales in pesos declined 6.5% in the third quarter compared to the year ago period. This was primarily due to a deceleration in the housing and public infrastructure sectors.

GCC’s proportional sales in Bolivia grew 27.5% in the third quarter of 2008 compared to the same period of last year as a result of greater demand in the housing, DIY and commercial sectors.

Consolidated net sales rose 8.0% in dollar terms in the first nine months of 2008 compared to the same period of last year.