Camargo Corrêa Cimentos sees profits rise 9.7% in 2007

Camargo Corrêa Cimentos sees profits rise 9.7% in 2007
02 April 2008

The growth of the Brazilian civil construction market buoyed the results in 2007 of Camargo Corrêa Cimentos. Last year, the company registered net profits of R$211m (US$120.5m), with 9.7% growth compared with the R$192.7m (US$110m) obtained in 2006.

Armando Silva, the company’s manager of strategic planning who soon will become administrative and financial director, attributed the performance to the recovery of receipts, both in greater sales volume and in higher prices of the cement sold, to production costs that rose less than inflation (the IPCA was 4.46% while production costs rose 3.7%); to reduced indebtedness, related primarily to the devalued dollar; and to the 10.7% cost reduction.

Net revenues of the controlling company rose 20.6%, growing from R$484m (US$276m) to R$584m (US$333.5m), while gross revenue rose 18.4%, to R$824 million (US$470.6m), influenced by greater sales volume and higher prices. The volume of grey cement sold on the Brazilian market reached 3.4Mt in 2007, a 10% increase over the 3.1Mt of the previous year.
Published under Cement News