CHIHUAHUA, Mexico, April 24, 2018 (GLOBE NEWSWIRE) -- Grupo Cementos de Chihuahua, S.A.B. de C.V. (BMV:GCC*), a leading producer of cement and ready-mix concrete in the United States and Mexico, today announces its results for the first quarter of 2018.
- Total sales increased 13.6% in 1Q2018, with U.S. sales up 11.9% and Mexico sales up 18.0%.
- EBITDA grew 40.6%, and the EBITDA margin increased 470 basis points.
- Net income increased 554.6%, with earnings per share of US$ 0.034.
- Operating income before other expenses increased 107.1%.
- Net leverage (Net debt/EBITDA) fell to 1.83 at the end of March 2018.
| KEY FIGURES (millions of dollars) | |||||||
| 1Q18 | 1Q17 | 1Q18 vs. 1Q17 | |||||
| Net Sales | 188.7 | 166.1 | 13.6% | ||||
| Operating Income before other expenses | 25.4 | 12.3 | 107.1% | ||||
| EBITDA | 45.9 | 32.6 | 40.6% | ||||
| EBITDA margin | 24.3% | 19.6% | |||||
| Consolidated Net Income | 11.3 | 1.7 | 554.6% | ||||
| Earnings per Share (US$) | 0.034 | 0.005 | |||||
| EBITDA: operating income before other expenses + depreciation and amortization | |||||||
GCC had a strong start to 2018, with double-digit increases in sales and EBITDA. The increases reflect strong cement demand and favorable cement pricing environments in both the United States and Mexico; increased ready-mix demand in Mexico; the effect of peso appreciation compared to the dollar; and strict control of operating expenses.
Enrique Escalante, GCC’s CEO, noted, “Our U.S. operations are catching the tailwind from the strong market in 2017 and the benefit of relatively mild winter weather in some of our markets. In Mexico, sales volumes were above our expectations. GCC’s consolidated EBITDA reached 24.3%, up 470 basis points from the previous year. Our EBITDA margin in Mexico reached an all-time record of 42.7% and U.S. margins were 16.6%, the highest for a first quarter since the 2009 financial crisis.”
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 April 25, 2018.
| Time: | 11:00 am (Eastern Time) / 10:00 am (Mexico City) / 09:00 am (Mountain Time) | |
| Dial in: | U.S.: | 1-888-289-0438 Toll Free |
| International: | 1-323-794-2423 | |
| Conference ID: | 7937298 | |
| Replay (through May 2, 2018): | ||
| U.S.: | 1-844-512-2921 Toll Free | |
| International: | 1-412-317-6671 | |
| Conference ID: | 7937298 | |
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; 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.