GCC reports second quarter 2006 results, Mexico
Grupo Cementos de Chihuahua (GCC) announced consolidated results for the second quarter of 2006. Net sales in the second quarter of 2006 increased 48.7% to $1,934.9 million pesos. These gains reflected higher sales in each of the company’s markets, as well as better prices. Sales figures include an increase of 72.0% in the U.S. and Bolivia, driven by the company’s acquisition strategy, and strong domestic growth of 19.6%, reflecting Mexico’s dynamic construction industry.
In the U.S., net sales rose 47.3% primarily due to better prices, the integration of newly acquired concrete operations and the sale of coal to third parties from the NKC mine. Results of Consolidated Ready Mix, Inc. (CRM) and Mid-Continent Concrete Company, Inc. (MidCo), acquired in January and May of 2006, were consolidated as of the first and second quarter, respectively. Cement sales volumes in the U.S. declined due to a decrease in the availability of third party cement and a delay in certain Department of Transportation highway projects. These projects are expected to take place in the second half of the year.
In Mexico, the strong 19.6% increase in net sales was due to better sales volumes in each of the company’s product lines, as well as higher average cement and concrete prices. These gains reflect the vigorous pace of investment in multiple construction sectors. In addition, land sales rose 62.1% compared to the year-ago period.
In Bolivia, SOBOCE’s net sales attributable to GCC totaled $178.2 million pesos in the second quarter. This reflects the strong demand for cement and concrete in highway infrastructure projects.
On a cumulative basis, GCC’s net sales in the first half of 2006 rose 46.6% over the year-ago period, based on increases of 43.6% and 17.6% in the U.S. and Mexico respectively, as well as the integration of SOBOCE’s sales.
Published under Cement News
