Cementos Argos reports a 69% profit rise at the end of 3Q14

Results for January – September 2014

Cementos Argos achieved a 16% y/y rise in consolidated income and 69% y/y increase in net profit in the first nine months of this year. This double-digit improvement has been attributed to a strong performance in most of the countries in which Argos operates, as well as the consolidation of the company’s operational excellence programme. Consolidated EBITDA was up by 8% y/y to US$415 million during the period, boosted by a positive performance in the US and the successful consolidation of acquisitions in Florida, Honduras and French Guiana. Sales volumes continued to grow, with cement sales rising by 9% y/y and concrete by 18% y/y.

Regional results

• Central America and the Caribbean: revenue came in at US$417 million, around 22% higher than in the corresponding period in 2013. Honduras and Panama were key drivers of growth in the region.
• USA: revenue grew by 44% y/y to over US$804 million. Cement sales volumes increased by 59% y/y and concrete by 27% y/y. The company has operations in Georgia, Florida and Texas, where cement consumption experienced growth of 24%, 2% and 13% y/y in the first nine months of 2014. This is higher than the North American average of 8.5%.
• Colombia: cement and concrete sales volumes improved by 3% and 5% y/y, respectively. Argos notes that recent government budget allocations for infrastructure, housing and education will help to maintain momentum in Colombia’s construction sector.

Projects

Argos is building a new production line at the Sogamoso plant in Colombia. This will increase the facility’s capacity by 2.3 million tpa. Also in Colombia, the company is expanding its capacity by 900 000 t in Antioquia. In the US, a new mill is being installed for the Harleyville plant in South Carolina.

“We have been operating ever more efficiently and sustainably, with ambitious expansion projects that will allow us to capitalise on the growth opportunities that we see in the upward and dynamic markets in which we participate. On the other hand, the good results of our recent acquisitions strengthen our strategy and contribute to the company’s performance,” said Jorge Mario Velásquez, Argos CEO.

Adapted from press release by Louise Fordham

Read the article online at: https://www.worldcement.com/the-americas/29102014/cementos-argos-announces-positive-results-for-january-september-2014-758/