Grupo Cementos de Chihuahua Announces 2001 First Quarter Results

Apr 25, 2001, 01:00 ET from Grupo Cementos de Chihuahua, S.A. de C.V.

    CHIHUAHUA, Mexico, April 25 /PRNewswire/ -- Grupo Cementos de Chihuahua
 successfully completed the acquisition of Dacotah Cement's assets on March 16,
 2001, through its subsidiary, GCC Dacotah, Inc.
     With this acquisition, which will provide strategic assets for its United
 States Division, GCC increased its annual cement production capacity by
 approximately 1,050,000 short tons (950,000 metric tons).
     The acquisition included Dacotah Cement's fixed assets and working
 capital. The fixed assets consist of the cement production plant located in
 Rapid City, South Dakota; five cement distribution terminals located,
 respectively, in Sioux Falls and Watertown, South Dakota; Casper, Wyoming;
 Scottsbluff, Nebraska and Denver, Colorado, as well as two transfer stations,
 one located in Moorcroft, Wyoming, and the other in Brookings, South Dakota.
     The US$252 million transaction included US$183 million in working capital
 and US$69 million in cash. GCC financed part of the acquisition with
 US$183 million in debt and the rest with the cash acquired in the transaction.
     Thus, the results obtained by GCC in the first quarter of 2001 include two
 weeks of operations of the new subsidiary, GCC Dacotah, Inc.
     Net sales for Grupo Cementos de Chihuahua obtained during the first
 quarter of 2001 reached $720.1 million pesos, an increase of 8.8% in real
 terms compared to the same quarter for 2000. This was achieved in a scenario
 in which both Mexico and the United States were experiencing economic
 slowdowns.
     During the quarter, 69.1% of the company's sales ($497.7 million pesos)
 were in the domestic market, an increase of 10.1% over the same quarter of
 last year. Sales were distributed as follow: 46.7%, cement and mortar; 30.5%,
 concrete; 6.3%, concrete block; 4.2%, aggregates; and 12.3% in other products.
     Of quarterly sales, 30.9% (U.S.$23.4 million or $222.4 million pesos) were
 in the United States. Sales increased 9.9% in dollars and were distributed as
 follow: 82.8%, cement and mortar, and 17.2, concrete.
     Operating profit for the first quarter of 2001 was $191.3 million pesos,
 an increase of 2.7% in real terms, compared to operating profit obtained
 during the same quarter in 2000. The operating margin was 26.6%.
     EBITDA was $249.1 million pesos, an increase of 4.6% over the same period
 last year, or 34.6% of sales.
     Net financial expenses (financial expenses less financial income) reported
 during the quarter was $17.7 million pesos, 27.3% more than last year, due to
 the payment of interest stemming from the debt contracted in the acquisition
 of Dacotah Cement's assets.
     These greater net financial expenses and a lower income from monetary
 position resulted in an overall finance cost of 7.9 million pesos for the
 quarter.
     Of other expenses and income, $39.5 million pesos (U.S.$4.3 million) were
 deposits (U.S.$1.5 million) and provisions (U.S.$2.7 million) for the anti-
 dumping tax on Mexican cement imports into the United States. The amount
 reported for this item for the quarter is 9.6% greater than in the same period
 of last year because of the larger volume of cement exported.
     The consolidated net profit obtained during the first quarter of 2001 was
 $104.4 million pesos, 7.4% less than last year, mainly due to a greater net
 financial expense, less income per monetary position, and due to greater
 deposits and provisions for the anti-dumping tax.
     The incorporation of the Dacotah Cement assets helped make Grupo Cementos
 de Chihuahua's total assets reach $7,228.2 million pesos, as of March 31,
 2001. This figure is 37.2% greater, in real terms, than the assets reported on
 March 31, 2000.
     GCC's total liabilities, as of March 31, 2001, were $3,936.7 million
 pesos, 70.3% higher than that reported on the same date in 2000, due to debt
 assumed in the acquisition of Dacotah Cement. Likewise, the company's net debt
 (debt with cost less cash and investments) increased to $1,822.1 million
 pesos.
     The short-term debt with cost, as of March 31, 2001, is $164.2 million
 pesos, of which $123.9 million pesos (U.S.$13 million) is dollar-denominated.
 The long-term bank debt is $2,363.9 million pesos, of which $2,169.5 million
 pesos (U.S.$228.4 million) is denominated in dollars.
     The company's total debt in constant millions of pesos as of March 31,
 2001 and in millions of dollars is:
 
                Mar 01    Dec 00    Mar 00    Mar 01/Dec 00  Mar 01/Mar 00
      Pesos     MX$234.8  MX$247.7  MX$288.7  -5.2%          -18.7%
      Dollars   US$241.4  MX$51.7   MX$70.0   367.0%         244.9%
 
     The dollar-denominated bank debt had an average cost of 7.15% during the
 first quarter, while the domestic currency-denominated debt had a cost of
 19.85% during that same period.
 
           Sales volume
 
                                       1Q01/1Q00
           Cement in Mexico              15.2%
           Cement in United States       3.9%
 
           Total cement sales            9.3%
 
           Concrete in Mexico            26.9%
           Concrete in United States     -25.7%
 
           Total concrete sales          10.9%
 
           Concrete block in Mexico      42.0%
 
           Aggregates in Mexico          29.0%
 
     The volume of cement sales, both in Mexico and in the United States, were
 benefited mainly from the construction of highway infrastructure. It is
 expected that the main highway construction projects in the state of Chihuahua
 that influenced the volumes sold during the first quarter will be concluded in
 April of this year.
     Of the volume of cement sold in the U.S. market, 56.6% was supplied by
 exports from the Samalayuca plant.
     Of the total tonnage of cement sold, 50.9% was in the Mexican market and
 49.1 in the United States market.
 
                          Grupo Cementos de Chihuahua
           Comparative table of results for the first quarter of 2001
                   (thousands of pesos as of March 31, 2001)
 
                                    1Q 2001     %     1Q 2000      % 1Q01/1Q00
 
     Net sales                     720,100  100.0%    661,700  100.0%     8.8%
       Domestic sales              497,711   69.1%    451,900   68.3%    10.1%
       Foreign sales               222,389   30.9%    209,800   31.7%     6.0%
     Cost of sales                 449,400   62.4%    404,600   61.1%    11.1%
 
     Gross income                  270,700   37.6%    257,100   38.9%     5.3%
 
     Operating expenses             79,400   11.0%     70,900   10.7%    12.0%
 
     Operating income              191,300   26.6%    186,200   28.1%     2.7%
 
     Financing costs
       Financial expenses           34,600    4.8%     28,000    4.2%    23.6%
       Financial income            (16,900)  -2.3%    (14,100)  -2.1%    19.9%
       Monetary effect              (9,700)  -1.3%    (27,600)  -4.2%   -64.9%
       Exchange loss                  (100)   0.0%       (300)   0.0%   -66.7%
     Total                           7,900    1.1%    (14,000)  -2.1%  -156.4%
 
     Other financial costs          52,900    7.3%     44,900    6.8%    17.8%
 
     Income before taxes and
      profit sharing               130,500   18.1%    155,300   23.5%   -16.0%
 
     Taxes and profit sharing       26,100    3.6%     42,500    6.4%   -38.6%
 
     Net consolidated income       104,400   14.5%    112,800   17.0%    -7.4%
       Net income of majority
        interest                   104,372   14.5%    112,768   17.0%    -7.4%
       Net income of minority
        interest                        28    0.0%         32    0.0%   -12.5%
 
       Ebitda                      249,100   34.6%    238,200   36.0%     4.6%
       Net financial expenses       17,700    2.5%     13,900    2.1%    27.3%
 
 
                                 Last 12 m          Last 12 m
                                  Mar-01      %      Mar-00         % Variation
 
     Net sales                   2,897,794  100.0%  2,644,892  100.0%     9.6%
 
     Operating income              792,556   27.4%    757,154   28.6%     4.7%
 
     EBITDA                        989,456   34.1%    948,925   35.9%     4.3%
 
     Net consolidated income       495,314   17.1%    444,222   16.8%    11.5%
 
 
                            Grupo Cementos de Chihuahua
         Comparative table of financial statement as of March 31, 2001
                   (thousands of pesos as of March 31, 2001)
 
                                           31-Mar-2001  31-Mar-2000 Variation
 
     Total assets                            7,228,200    5,267,300     37.2%
       Current assets                        1,888,500    1,448,400     30.4%
         Cash and temporary investments        706,000      661,000      6.8%
       Long term assets                         55,900       60,500     -7.6%
       Fixed assets                          4,357,000    3,639,100     19.7%
       Other assets                            926,800      119,300    676.9%
 
     Total liabilities                       3,936,700    2,312,200     70.3%
       Current liabilities                     419,600      350,000     19.9%
         Bank debt                             164,200      163,300      0.6%
       Long term liabilities                 2,363,900      811,000    191.5%
         Bank debt                           2,363,900      811,000    191.5%
       Diferred taxes                          878,400      997,700    -12.0%
       Other liabilities                       274,800      153,500     79.0%
 
     Consolidated stockholder's equity       3,291,500    2,955,100     11.4%
       Majority interest                     3,290,585    2,954,200     11.4%
       Minority interest                           915          900      1.7%
 
 

SOURCE Grupo Cementos de Chihuahua, S.A. de C.V.
    CHIHUAHUA, Mexico, April 25 /PRNewswire/ -- Grupo Cementos de Chihuahua
 successfully completed the acquisition of Dacotah Cement's assets on March 16,
 2001, through its subsidiary, GCC Dacotah, Inc.
     With this acquisition, which will provide strategic assets for its United
 States Division, GCC increased its annual cement production capacity by
 approximately 1,050,000 short tons (950,000 metric tons).
     The acquisition included Dacotah Cement's fixed assets and working
 capital. The fixed assets consist of the cement production plant located in
 Rapid City, South Dakota; five cement distribution terminals located,
 respectively, in Sioux Falls and Watertown, South Dakota; Casper, Wyoming;
 Scottsbluff, Nebraska and Denver, Colorado, as well as two transfer stations,
 one located in Moorcroft, Wyoming, and the other in Brookings, South Dakota.
     The US$252 million transaction included US$183 million in working capital
 and US$69 million in cash. GCC financed part of the acquisition with
 US$183 million in debt and the rest with the cash acquired in the transaction.
     Thus, the results obtained by GCC in the first quarter of 2001 include two
 weeks of operations of the new subsidiary, GCC Dacotah, Inc.
     Net sales for Grupo Cementos de Chihuahua obtained during the first
 quarter of 2001 reached $720.1 million pesos, an increase of 8.8% in real
 terms compared to the same quarter for 2000. This was achieved in a scenario
 in which both Mexico and the United States were experiencing economic
 slowdowns.
     During the quarter, 69.1% of the company's sales ($497.7 million pesos)
 were in the domestic market, an increase of 10.1% over the same quarter of
 last year. Sales were distributed as follow: 46.7%, cement and mortar; 30.5%,
 concrete; 6.3%, concrete block; 4.2%, aggregates; and 12.3% in other products.
     Of quarterly sales, 30.9% (U.S.$23.4 million or $222.4 million pesos) were
 in the United States. Sales increased 9.9% in dollars and were distributed as
 follow: 82.8%, cement and mortar, and 17.2, concrete.
     Operating profit for the first quarter of 2001 was $191.3 million pesos,
 an increase of 2.7% in real terms, compared to operating profit obtained
 during the same quarter in 2000. The operating margin was 26.6%.
     EBITDA was $249.1 million pesos, an increase of 4.6% over the same period
 last year, or 34.6% of sales.
     Net financial expenses (financial expenses less financial income) reported
 during the quarter was $17.7 million pesos, 27.3% more than last year, due to
 the payment of interest stemming from the debt contracted in the acquisition
 of Dacotah Cement's assets.
     These greater net financial expenses and a lower income from monetary
 position resulted in an overall finance cost of 7.9 million pesos for the
 quarter.
     Of other expenses and income, $39.5 million pesos (U.S.$4.3 million) were
 deposits (U.S.$1.5 million) and provisions (U.S.$2.7 million) for the anti-
 dumping tax on Mexican cement imports into the United States. The amount
 reported for this item for the quarter is 9.6% greater than in the same period
 of last year because of the larger volume of cement exported.
     The consolidated net profit obtained during the first quarter of 2001 was
 $104.4 million pesos, 7.4% less than last year, mainly due to a greater net
 financial expense, less income per monetary position, and due to greater
 deposits and provisions for the anti-dumping tax.
     The incorporation of the Dacotah Cement assets helped make Grupo Cementos
 de Chihuahua's total assets reach $7,228.2 million pesos, as of March 31,
 2001. This figure is 37.2% greater, in real terms, than the assets reported on
 March 31, 2000.
     GCC's total liabilities, as of March 31, 2001, were $3,936.7 million
 pesos, 70.3% higher than that reported on the same date in 2000, due to debt
 assumed in the acquisition of Dacotah Cement. Likewise, the company's net debt
 (debt with cost less cash and investments) increased to $1,822.1 million
 pesos.
     The short-term debt with cost, as of March 31, 2001, is $164.2 million
 pesos, of which $123.9 million pesos (U.S.$13 million) is dollar-denominated.
 The long-term bank debt is $2,363.9 million pesos, of which $2,169.5 million
 pesos (U.S.$228.4 million) is denominated in dollars.
     The company's total debt in constant millions of pesos as of March 31,
 2001 and in millions of dollars is:
 
                Mar 01    Dec 00    Mar 00    Mar 01/Dec 00  Mar 01/Mar 00
      Pesos     MX$234.8  MX$247.7  MX$288.7  -5.2%          -18.7%
      Dollars   US$241.4  MX$51.7   MX$70.0   367.0%         244.9%
 
     The dollar-denominated bank debt had an average cost of 7.15% during the
 first quarter, while the domestic currency-denominated debt had a cost of
 19.85% during that same period.
 
           Sales volume
 
                                       1Q01/1Q00
           Cement in Mexico              15.2%
           Cement in United States       3.9%
 
           Total cement sales            9.3%
 
           Concrete in Mexico            26.9%
           Concrete in United States     -25.7%
 
           Total concrete sales          10.9%
 
           Concrete block in Mexico      42.0%
 
           Aggregates in Mexico          29.0%
 
     The volume of cement sales, both in Mexico and in the United States, were
 benefited mainly from the construction of highway infrastructure. It is
 expected that the main highway construction projects in the state of Chihuahua
 that influenced the volumes sold during the first quarter will be concluded in
 April of this year.
     Of the volume of cement sold in the U.S. market, 56.6% was supplied by
 exports from the Samalayuca plant.
     Of the total tonnage of cement sold, 50.9% was in the Mexican market and
 49.1 in the United States market.
 
                          Grupo Cementos de Chihuahua
           Comparative table of results for the first quarter of 2001
                   (thousands of pesos as of March 31, 2001)
 
                                    1Q 2001     %     1Q 2000      % 1Q01/1Q00
 
     Net sales                     720,100  100.0%    661,700  100.0%     8.8%
       Domestic sales              497,711   69.1%    451,900   68.3%    10.1%
       Foreign sales               222,389   30.9%    209,800   31.7%     6.0%
     Cost of sales                 449,400   62.4%    404,600   61.1%    11.1%
 
     Gross income                  270,700   37.6%    257,100   38.9%     5.3%
 
     Operating expenses             79,400   11.0%     70,900   10.7%    12.0%
 
     Operating income              191,300   26.6%    186,200   28.1%     2.7%
 
     Financing costs
       Financial expenses           34,600    4.8%     28,000    4.2%    23.6%
       Financial income            (16,900)  -2.3%    (14,100)  -2.1%    19.9%
       Monetary effect              (9,700)  -1.3%    (27,600)  -4.2%   -64.9%
       Exchange loss                  (100)   0.0%       (300)   0.0%   -66.7%
     Total                           7,900    1.1%    (14,000)  -2.1%  -156.4%
 
     Other financial costs          52,900    7.3%     44,900    6.8%    17.8%
 
     Income before taxes and
      profit sharing               130,500   18.1%    155,300   23.5%   -16.0%
 
     Taxes and profit sharing       26,100    3.6%     42,500    6.4%   -38.6%
 
     Net consolidated income       104,400   14.5%    112,800   17.0%    -7.4%
       Net income of majority
        interest                   104,372   14.5%    112,768   17.0%    -7.4%
       Net income of minority
        interest                        28    0.0%         32    0.0%   -12.5%
 
       Ebitda                      249,100   34.6%    238,200   36.0%     4.6%
       Net financial expenses       17,700    2.5%     13,900    2.1%    27.3%
 
 
                                 Last 12 m          Last 12 m
                                  Mar-01      %      Mar-00         % Variation
 
     Net sales                   2,897,794  100.0%  2,644,892  100.0%     9.6%
 
     Operating income              792,556   27.4%    757,154   28.6%     4.7%
 
     EBITDA                        989,456   34.1%    948,925   35.9%     4.3%
 
     Net consolidated income       495,314   17.1%    444,222   16.8%    11.5%
 
 
                            Grupo Cementos de Chihuahua
         Comparative table of financial statement as of March 31, 2001
                   (thousands of pesos as of March 31, 2001)
 
                                           31-Mar-2001  31-Mar-2000 Variation
 
     Total assets                            7,228,200    5,267,300     37.2%
       Current assets                        1,888,500    1,448,400     30.4%
         Cash and temporary investments        706,000      661,000      6.8%
       Long term assets                         55,900       60,500     -7.6%
       Fixed assets                          4,357,000    3,639,100     19.7%
       Other assets                            926,800      119,300    676.9%
 
     Total liabilities                       3,936,700    2,312,200     70.3%
       Current liabilities                     419,600      350,000     19.9%
         Bank debt                             164,200      163,300      0.6%
       Long term liabilities                 2,363,900      811,000    191.5%
         Bank debt                           2,363,900      811,000    191.5%
       Diferred taxes                          878,400      997,700    -12.0%
       Other liabilities                       274,800      153,500     79.0%
 
     Consolidated stockholder's equity       3,291,500    2,955,100     11.4%
       Majority interest                     3,290,585    2,954,200     11.4%
       Minority interest                           915          900      1.7%
 
 SOURCE  Grupo Cementos de Chihuahua, S.A. de C.V.