GCC reports 3Q results, Mexico
Grupo Cementos de Chihuahua (GCC) announced consolidated results for the third quarter of 2006.
Net sales in the third quarter of 2006 increased 56.3% as a result of a combination of the following factors: 96.0% growth in international sales, driven primarily by the integration of acquired concrete companies in the U.S. and the cement company in Bolivia; domestic growth of 11.2%, which reflects Mexico’s dynamic construction sector; and a better pricing environment in all of our products and markets.
Growth in international sales was derived mainly from the 73.0% increase in the U.S. market, which resulted from the integration of Consolidated Ready Mix, Inc. (CRM) and Mid-Continent Concrete Company (MidCo); better cement prices; and a slight reduction in cement sales volumes from the slowdown in the construction industry, primarily in residential housing.
In the third quarter of 2006, net sales attributable to GCC from Bolivia represented 13.3% of international sales.
In Mexico, the 11.2% increase in net sales was due to increased volumes and higher average prices in most of the company’s product lines, as well as greater land sales in the quarter.
On a cumulative basis, GCC’s net sales in the first nine months of 2006 rose 50.3% over the year ago period. This increase resulted from the integration of U.S. acquisitions, which combined with organic growth in that market, generated 55.4% growth in net sales. In Mexico, cumulative growth of 15.3% was a combination of higher volumes and prices in all product lines. In addition, sales in Bolivia totaled $510.4 million pesos in the first nine months of 2006. Published under Cement News
