U.S., Mexican and Canadian cement supplier Grupo Cementos de Chihuahua, S.A.B. de C.V reported consolidated net sales increased 1% to $242.8 million in the second quarter of 2020. Net sales rose by 5% year-on-year to $424 million in the first half of the year from $404 million in the same period in 2019.
Earnings before interest, taxation, depreciation and amortization (EBITDA) increased 15.3% to $81.8 million for the quarter compared to the prior-year period. For the first half of the year, EBITDA rose by 16.4% to $127 million.
The company’s U.S. cement and ready-mix concrete sales volumes in the second quarter increased by 3.6% and 17.2%, respectively.
Enrique Escalante, GCC’s chief executive officer, commented: “GCC delivered strong operational and solid bottom-line growth results for the second quarter of 2020 despite the challenges arising from the pandemic. Increased concrete and cement volumes in the U.S. demonstrate the construction industry´s tailwinds and resiliency on the back of improved weather conditions. EBITDA growth, free cash flow generation & margin expansion reflected the successful execution of a comprehensive plan to reduce costs and expenses.”
Escalante continued, “Looking forward, our backlog remains strong in the U.S.; overall macro conditions are starting to deteriorate, and high levels of uncertainty prevail. Therefore, we expect additional challenges in the quarters ahead. We remain cautiously optimistic on further economic stimuli from the governments, including a sizable infrastructure bill.
“We are confident in our financial and operational strengths, as well as in the bold steps taken to navigate today´s challenges. I am convinced that, like in the past downturns, GCC will weather this storm and will emerge from it even stronger,” he said.