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Cementos Argos announces positive results

Published by , Assistant Editor
World Cement,

Cementos Argos has announced positive results and a good macroeconomic outlook for 1H17. Cement shipment volumes reached 8 million t, increasing by 15%, and ready-mix shipments were 5.4 million m3, a decrease of 7%.

The company reached US$1.500 million in revenues and US$219 million in EBITDA, 4% and 26%, lower than 1H16, respectively. However, contrary to the results obtained from January to March, the second quarter showed a recovery in net income, reaching US$18 million between April and June and US$700 000 year to date. This represents better prospects for the company in the Colombian market and the progressive achievement of its goals in operating efficiencies, as well as a greater contribution from business in the US.

At the end of the first half of the year, the company's horizons are favourable thanks to its internationalisation strategy, which is in line with the objective of diversifying its own risk of competing in a cyclical industry.

"The positive results obtained in the US, Caribbean, and Central America partially offset the challenges we are facing in the Colombian market. As of 30 June, 73% of revenues and 77% of EBITDA were generated abroad in dollars or in currencies largely related to the dollar. Additionally, we expect a better second half of the year in the local market as a result of growth in shipments to the 4G projects in Colombia and the recovery in consumption that should appear as a result of the reduction in interest rates,” said Juan Esteban Calle, Cementos Argos CEO.

Cementos Argos attained additional milestones during 1H17, such as the opening of a new mill in San Lorenzo, Honduras; the purchase of an integrated cement plant in Puerto Rico; the launch of new products such as enhanced concrete and soil cement; and the integration of a new cement plant in West Virginia, as well as eight related terminals across the Northeast US.

Likewise, significant progress was made in the Cementos Argos Building Efficiency and Sustainability for Tomorrow (BEST) program, highlighting an increase in the use of alternative fuels, the sale of non-operating assets and the incorporation of technology, which contribute to the company’s purpose to continue their support in the development of the countries and territories in which it has a presence and to become the most efficient producer in these markets.

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