GCC Reports Third Quarter 2017 Results
CHIHUAHUA, Mexico, Oct. 24, 2017 (GLOBE NEWSWIRE) -- Grupo Cementos de Chihuahua, S.A.B. de C.V. (BMV:GCC*), a leading producer of cement and ready-mix in markets in the United States and Mexico, today announced its results for the third quarter of 2017.
- Total sales increased 15.9% in the third quarter of 2017
- U.S. cement and concrete volumes grew, with the strongest sales in Texas, Colorado, New Mexico, and Nebraska
- Cement and concrete prices increased in both U.S. and Mexico
- EBITDA grew 14.2% in the quarter and 25.1% in the first nine months of 2017
- The EBITDA margin for the first nine months of 2017 reached 25.8%
- Net leverage (Net debt/EBITDA) fell to 2.27 at the end of September 2017
KEY FIGURES (millions of pesos)
| 3Q17 vs. | Nine months | 9M17 vs. | ||||||||||
| 3Q17 | 3Q16 | 3Q16 | 2017 | 2016 | 9M16 | |||||||
| Net Sales | 4,968 | 4,288 | 15.9% | 12,830 | 10,318 | 24.3% | ||||||
| Operating Income before other expenses |
1,049 | 973 | 7.8% | 2,135 | 1,841 | 16.0% | ||||||
| EBITDA |
1,421 | 1,245 | 14.2% | 3,305 | 2,642 | 25.1% | ||||||
| Margin EBITDA/Sales | 28.6% | 29.0% | 25.8% | 25.6% | ||||||||
| Consolidated Net Income |
548 | 601 | -8.8% | 993 | 1,097 | -9.4% | ||||||
EBITDA: operating income + depreciation and amortization
GCC generated double-digit increases in sales and EBITDA during the quarter. Results reflect the successful integration of the operations acquired in Texas and New Mexico late last year, favorable pricing environments in both the U.S. and Mexico, and solid progress in the execution of the Company’s growth strategy.
Enrique Escalante, the CEO of GCC, commented: “We continue to be on track in terms of executing our business strategy. Our EBITDA margin in Mexico reached 40.8% – the highest in the last decade – and our U.S. margins reached 25.3%, the second highest since the Great Recession. We have completed the initial integration of the Odessa, Texas plant and other operations in Texas and New Mexico acquired last November. In addition, the expansion of the South Dakota plant is proceeding on schedule and GCC is continuing to make improvements in all our operations.”
“We are also pleased that our leverage continues to come down faster than expected. We are ahead of schedule to meet our target of 2.0 times Net Debt/EBITDA ratio by the end of 2018.”
Complete earnings report
GCC’s complete third quarter 2017 earnings report is available on GCC’s Investor Relations page.
Conference call
Grupo Cementos de Chihuahua, S.A.B. de C.V. will host its earnings conference call on October 25, 2017.
| Time: | 11:00 am (Eastern time) / 10:00 am (Mexico City time) / 09:00 am (Mountain time) | ||
| Dial In: | In the U.S.: | (877) 723 9520 | |
| International: | +1 (719) 325-4801 | ||
| Conference ID: | 6756228 | ||
| Replay (through 11/01/17): | |||
| In the U.S.: | (844) 512-2921 | ||
| International: | +1 (412) 317-6671 | ||
| Conference ID: | 6756228 | ||
Listen-only webcast and replay: click here.
| For further information, contact: | |
| GCC Investor Relations: | |
| Ricardo Martinez +52 (614) 442 3176 rmartinezg@gcc.com |
Daniel Wilson, Zemi Communications +1 212 689 9560 dbmwilson@zemi.com |
About GCC
GCC is a leading supplier of cement, concrete, aggregates, and construction‐related services in the United States and Mexico, with an annual cement production capacity of 5.1 million metric tons. Founded in 1941, the Company’s shares are listed on the Mexican Stock Exchange under the ticker symbol GCC.
Forward Looking Statements
This press release may contain forward-looking statements. All statements that are not clearly historical in nature are forward-looking, and the words “anticipate,” “believe,” “expect,” “estimate,” “intend,” “project” and similar expressions are generally intended to identify forward-looking statements. These statements are subject to risks and uncertainties including, among others, changes in macroeconomic, political, governmental or business conditions in the markets where GCC operates; changes in interest rates, inflation rates and currency exchange rates; performance of the construction industry; and pricing, business strategy, and other factors. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may differ materially from the beliefs, projections, and estimates described herein. GCC assumes no obligation to update the information contained in this press release.
