Cementos Argos reported a profitable first quarter in all its regional divisions due to the recent acquisition of cement and concrete assets in Honduras and Florida as well as the growing industrialization of the construction sector in Colombia. Net income grew by 52 percent compared to the prior year period. Consolidated EBITDA and revenues increased 12 percent and 18 percent, respectively, compared to the first quarter of 2013.
As a result of the higher volumes of cement that were sold during the first quarter of 2014, the United States division was able to obtain 27 percent more revenue, compared to the same period in 2013, while sales of ready-mix concrete increased by 16 percent.
In the Caribbean and Central America, revenue increased by 27 percent. Positive trends can be seen in this regional division, with operations such as the one in Panama recording an upturn of 11 percent in dispatched cement volumes, excluding sales to the Panama Canal.
In Colombia, a positive trend in housing construction and civil infrastructure projects have contributed to the company’s increased dispatched volumes, which was about 4 percent more than the prior year period. Also, a 13.3 percent growth of concrete volumes is a clear sign of the upward dynamism of the industrial business segment in the country and ratifies the strategy of offering added-value services, noted the company.
“The significant increase of our profitability across all of the company’s three regional divisions, the still important potential for improvement in the U.S., and the effective integration of the operations in Honduras and in Florida all contributed to us closing a very solid first quarter, with positive perspectives for the rest of the year 2014 as well,” concludes Jorge Velásquez, CEO of Argos.