Mexico: Group Cementos Chihuahua (GCC) reported a better-than-expected fourth quarter in 2019, due largely to record sales volumes in the US, its main market. A delay to the start of the construction season, an order book containing contracts for oil well cement and alternative energy projects and strong residential and infrastructure segments, boosted its cement sales volumes by 12.3%. Along with an increase of 2.9% in prices overall (4.8% rise in the US), this gave rise to sales figures 13.2% higher than in the fourth quarter of 2018.
"Our excellent operational execution and robust distribution network, supported by improved climate, once again contributed to record volumes in cement in the US, surpassing our estimates," said Enrique Escalante, GCC’s Managing Director.
In its domestic Mexican market, sales increased by 5.6% due to a mixture of higher prices and appreciation of the national currency. Industrial warehouse construction segments, mining projects and middle housing in border towns were factors for the rise.