GCC 1H18 sales rise by 11.4%

GCC 1H18 sales rise by 11.4%
25 July 2018

Grupo Cementos de Chihuahua (GCC) reports that its 1H18 sales increased 11.4 per cent to US398.8m, generating US$115m in EBITDA, up 22 per cent YoY. However, the company's net result slipped, registering a minor loss of US$0.6m.

In the 2Q18, sales advanced 6.9 per cent to US$232.3m when compared with the 2Q17. EBITDA rose 8.7 per cent in the 2Q18 to US$69.4m. The company also reported a net loss for the 2Q18 of US$11.9m.

During the 1H18 GCC completed the acquisition of the 0.315Mt capacity Trident cement plant in Three Forks, Montana, USA, from CRH for US$107.5m which increased the group's capacity by 11 per cent. The company also sold ready-mix operations in Oklahoma and Arkansas.

Enrique Escalante, GCC’s CEO, said, "GCC's operating results continue the steady improvement in sales and margins that we’ve delivered since 2013. We also took a number of strategic actions that will help us achieve our long-term goals effectively.

"The new cement plant in Three Forks, Montana, extends our market footprint and integrates well with our existing cement network. The asset sale removes some non-core assets that were a drag on our performance. The debt refinancing significantly lowers financial costs and further strengthens our capital structure and leverage profile.

"Our first half operating performance and the M&A and financial transactions will help make 2018 another benchmark year in GCC's transformation," Mr Escalante said.

With the completion of the Rapid Cement plant expansion later this year, GCC will have eight cement plants in the US and Mexico, with a total production capacity of 5.4Mta.

Published under Cement News