GCC, a leading supplier and producer of cement and concrete in the United States and Mexico, announced its results for the first quarter of 2023.
The company reported consolidated net sales increased 17.9% year-on-year to $243.9 million for the quarter, primarily due to increased concrete volumes in the United States, increased cement and concrete volumes in Mexico, and a favorable price environment in both markets. These were partially offset by decreased cement volumes in the United States.
U.S. sales for the first quarter 2023 increased by 9.5% to $148.3 million and represented 61% of GCC’s consolidated net sales. This was due to a 27% increase in concrete volumes and a 20.6% and 5.6% increase in cement and concrete prices, respectively, partially offset by a 9.6% decrease in cement volumes. The oil and gas, commercial and industrial sectors were the quarter’s most dynamic market segments.
Mexico sales increased by 33.8% in the first quarter 2023 to $95.6 million, representing 39% of GCC’s consolidated net sales. This was due to an 11.1% and 11.2% increase in cement and concrete volumes, respectively, and a 12.6% and 11.1% increase in cement and concrete prices, respectively.
The appreciation of the Mexican peso against the U.S. dollar during the quarter increased sales by $5.8 million. For comparative purposes, Mexico sales excluding the appreciation of the Mexican peso would have increased by 25.7%.
Mexico sales during the quarter were primarily driven by demand related to industrial maquiladora plants and warehouse construction.
“GCC delivered solid results for the first quarter despite significant weather disruptions in the U.S. We remained focused on operational excellence and pre-empting headwinds,” said Enrique Escalante, GCC’s chief executive officer. “Strong volume demand continues, and we’re leveraging all GCC facilities to ensure we’re deriving maximum benefits and strengthening our margins. We’re creating a more efficient and agile network to drive value in the years to come.”