Cementos Argos has announced its 3Q12 financial results. Consolidated income came in at more than COP3.2 billion. Operating EBITDA increased by 25% y/y, with a margin of 18.4%. Cement sales in Colombia, the Caribbean and the US rose by 7% y/y to 8.2 million t, while 6.4 million cm3 of concrete was sold, 9% higher than in 3Q11.
According to Argos President Jorge Mario Velásquez, infrastructure development is boosting cement and concrete consumption in Colombia and a similar pattern is emerging in the Caribbean and Panama. He also noted that both sales volumes and prices were increasing in the US, particularly in Texas. The US market is beginning to show signs of recovery as housing construction picks up, leading to forecasts of growth in the residential sector.
In September, the company announced that it would be investing in cement capacity expansion plans for Central Colombia, increasing its cement production capacity by 900 000 tpa. The first part of the project will involve increasing capacity at the Rioclaro plant, a project that will take around 14 months to complete and that will generate approximately 400 jobs during the construction phase. Around 5000 t of equipment will be installed, at a cost of US$103/t of cement. The new capacity is due to come onstream in 1Q14, with the aim of supplying the markets in Antioquia, Cundinamarca, Santander and Eje Cafetero. Once completed, Cementos Argos’ installed capacity in the country will reach 10.9 million tpa.
Adapted from press release by Louise Fordham.