Weaker cement volumes hit Argos' Q3 bottom line

Thursday, November 24, 2016

A 7.4% and 11.9% decline in cement and ready-mix volumes, respectively, pushed lower the Q3 earnings of Colombia's largest cement group, Cementos Argos.

The company reported 113bn pesos (US$35.6mn) in earnings in the quarter, down from 145bn pesos in the year-ago period, the company said in its third quarter results statement.

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For the first nine months, earnings were up 18.7% to 393bn pesos.

Company-wide cement volumes were down to 3.56Mt from 3.84Mt in 3Q15, while ready-mix volumes were down to 2.84Mm3 from 3.22Mm3 in the same comparison.

"Our consolidated results showed resilience during the third quarter, due to a successful strategy of geographical diversification," said Argos, noting that its US, Central America and Caribbean divisions offset the challenges faced by its home base operations with the delays in Colombia's so-called 4G infrastructure projects.

Results were also impacted by non-recurrent expenses of some 15.6bn pesos related to its BEST program, "which seeks to make Cementos Argos the most efficient cement and concrete producer in all regions where it operates."