GCC's fourth-quarter sales rise 18% YoY
GCC (Grupo Cementos de Chihuahua) reported a sales increase of 18 per cent in the fourth quarter compared to the same period of 2013, totaling MXN2546.1m (U$$170m), reflecting an increase in both Mexico and the US across all the company's products.
In the US, sales rose 17.6 per cent compared to the fourth quarter of 2013 and totaled MXN1735.6m. Cement sales volumes grew five per cent and concrete 20 per cent, driven by demand in Texas, South Dakota, Iowa, New Mexico, Arkansas and Oklahoma, particularly in the public utility infrastructure sector and highway and road construction, as well as in the commercial and industrial segments. The pricing environment remained positive in cement and stable in concrete. Sales growth in dollar terms in the United States was 11.5 per cent, reflecting a 6.3 per cent depreciation of the peso against the dollar in the period.
In Mexico, sales advanced 18.8 per cent over the fourth quarter of 2013, totaling MXN810.4m, as a result of 22 and 23 per cent growth in cement and concrete sales volumes, respectively, plus 19 per cent in block and aggregates, driven by increased activity in the residential, commercial and industrial segments and ongoing public infrastructure, urban paving and highway projects. The pricing environment was stable with respect to the same quarter of last year.
Consolidated net sales for 2014 rose 19.1 per cent over 2013, totaling MXN10,009.7m. The group said that growth of 23 per cent in the United States reflected dynamism in the residential and non-residential segments of the construction industry, in addition to public utility infrastructure and public investment in regions with stronger economic growth such as Colorado, Texas and North Dakota, as well as the better pricing environment. In Mexico, the 10.7 per cent increase in sales reflects increased activity in the commercial, industrial and residential sectors and major public infrastructure projects undertaken during the year, in an environment of stable pricing.
