CHIHUAHUA, Mexico, Feb. 13, 2018 (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 fourth quarter and full year 2017.
- Total sales increased 28.0% in the fourth quarter of 2017 and 23.6% in the full year.
- EBITDA grew 58.4% in the quarter and 32.3% in the full year 2017.
- The EBITDA margin in 4Q2017 increased 570 basis points. For the full year, the margin increased 180 basis points to 27.0%.
- Net leverage (Net debt/EBITDA) fell to 1.86 at the end of December 2017.
KEY FIGURES (millions of dollars)
| 4Q17 | 4Q16 | 4Q17 vs. 4Q16 | 2017 | 2016 | 2017 vs. 2016 | |||||||
| Net Sales | 238.1 | 186.0 | 28.0 | % | 925.3 | 748.5 | 23.6 | % | ||||
| Operating Income before other expenses | 50.8 | 26.8 | 89.2 | % | 167.3 | 126.6 | 32.1 | % | ||||
| EBITDA | 71.3 | 45.0 | 58.4 | % | 249.5 | 188.6 | 32.3 | % | ||||
| EBITDA margin | 29.9 | % | 24.2 | % | 27.0 | % | 25.2 | % | ||||
| Consolidated Net Income | 28.5 | 9.8 | 192.3 | % | 83.3 | 69.1 | 20.5 | % | ||||
EBITDA: operating income + depreciation and amortization
GCC once again generated double-digit increases in sales and EBITDA during the quarter. Results reflects strong demand in both the U.S. and Mexico, as well as the successful integration of the operations acquired in Texas and New Mexico at the end of 2016. Results also benefitted from favorable pricing environments and good weather 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: “GCC had an outstanding fourth quarter and strong full year results. EBITDA increased 58% in the quarter and 32% in the full year. At the beginning of 2017, we expected to improve our EBITDA margin by at least 150 basis points. Our actual full year result was an increase of 180 basis points. We also reached our 2.0 times EBITDA leverage objective a year early. The leverage ratio fell to 1.86 times at the end of 2017.”
“We begin 2018 with a promising business outlook, particularly in the U.S., where we foresee solid increases in demand and cement prices,” he concluded.
Complete earnings report
GCC’s complete 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 February 14, 2018.
| Time: | 11:00 am (Eastern Time) / 10:00 am (Mexico City time) / 09:00 am (Mountain Time) | |
| Dial in: | U.S.: International: Conference ID: | 1-888-378-4439 Toll Free 1-323-701-0225 1077193 |
| Replay (through 2/21/18): | ||
| U.S.: International: Conference ID: | 1-844-512-2921 Toll Free 1-412-317-6671 1077193 | |
Listen-only webcast and replay: click here.
For further information, contact:
| GCC Investor Relations: | |
| Ricardo Martinez +1 (303) 739 5943 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.