GCC Reports First Quarter 2007 Results; solid growth in international and domestic sales
Grupo Cementos de Chihuahua S.A.B. de C.V today announced consolidated results for the first quarter ended March 31, 2007.
GCC’s successful growth strategy and continuous efforts to attain the highest levels of operating efficiency were seen in the results of the quarter, which reflected higher revenues from the new acquisitions and organic growth, a better pricing environment and greater operating efficiency.
Net Sales in the first quarter of 2007 increased 35.6% from the year ago period, totaling $1,698.3 million pesos. This included a 42.3% increase in international sales (U.S. and Bolivia) and 27.2% domestically. These results reflect the successful integration of acquired concrete operations in the U.S. and strong organic volume growth in Mexico. Net sales also benefited from better cement prices in the U.S. market.
In the United States, sales grew 60.0% in the quarter primarily as a result of the integration of Mid-Continent Concrete Company (MidCo), which was acquired in May of 2006. Higher cement prices in the period offset the decline in volumes resulting from a less dynamic residential housing segment.
In Mexico, the 27.2% growth in net sales was the result of greater volumes in all of GCC’s product lines, due to increased sales in the housing and public works sectors, as well as higher land sales in the period.
In the first quarter of 2007, GCC’s proportional share of sales in Bolivia represented 8.7% of total sales. Lower volumes in this market resulted from the completion of important highway projects, and the delay, due to adverse weather conditions, of projects that had been scheduled for this quarter.
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