Q3 Report for the Period Ending September 30, 2009

So far this year, Cementos Argos has obtained a significant level of profitability with EBITDA increasing by 15%, operating profit by 37% and net profits by 190%

PR Newswire

posted: 35 DAYS 5 HOURS AGO

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MEDELLIN, Colombia, Oct. 23 /PRNewswire-FirstCall/ -- On a consolidated basis, Cementos Argos (OTC Bulletin Board: CMTOY) posted operating revenues of COP $2.7 billion ( US$ 1,216 million), which were 4% lower than those for the same period last year. The Company obtained savings of 7% through its cost and expense reduction program, which produced a 37% increase in operating profits.

EBITDA rose by 15% to COP$ 516 billion ( US$ 234 million). On the other hand, consolidated EBITDA rose by 324 bps, from 15.9% for the first nine months of last year to 19.2% for the same period this year.

Net profits came to COP$ 266 billion ( US$ 100 million) showing an increase of 190% compared to the same period last year, mainly due to profits obtained from the sale of coal-mining assets to the Brazilian company Vale.

OPERATING RESULTS

During the first nine months of this year, operating revenues on the part of our companies based in Colombia declined by 3% while EBITDA rose by 5%.

The Caribbean increased its operating revenues by 60% and its EBITDA by a further 85% (21% and 55% respectively upon eliminating the effect of having consolidated operations in the Dominican Republic and those of Caricement).

On the other hand, revenues and EBITDA from U.S. operations dropped by 31% and 32%, respectively, mainly due to the declining demand for ready mix in the markets in question. Thanks to our cost and expense reduction program, we are beginning to see signs of stabilization.

Cementos Argos is the leader in the Colombian cement industry; with 51% of market share, it is the fourth-largest cement producer in Latin America and the Caribbean with investments in Panama, Haiti, the Dominican Republic, St. Thomas, St. Marteen, Antigua and Dominica. It is the sixth-largest ready mix producer in the United States and also exports cement and clinker to 37 countries. In 2008, Argos had a market capitalization of over US$ 3.5 billion and income of over US$ 1,955 million. The geographic origin of this income is 44% from Colombia, 34% from the United States, 9% from Latin America and 13% from other businesses. In terms of business, 47% comes from ready mix, 40% from cement and 13% from others.

Contact: Maria Clara Aristizabal Cementos Argos 57-4-3198712 maristizabalr@argos.com.co

SOURCE Cementos Argos

2009-10-23 12:09:00