Argentina Cement Maker Swings Back to Profit
Loma Negra, a cement maker listed in New York, swung to a profit in the third quarter even as sales fell 3.2% and concrete volumes dropped 25%. The post Argentina Cement Maker Swings Back to Profit appeared first on The Rio Times .
Argentina's leading cement producer, Loma Negra, has returned to profit in a challenging building market despite a decline in sales. The company reported a net profit of 14.5 billion pesos (approximately US$9.5 million) for the third quarter, reversing a loss from the previous year. Despite a 3.2% drop in net sales to 270.1 billion pesos (about US$180 million), the company's financial gain played a significant role in the profit turnaround, primarily due to a reduction in net financial expenses and a weaker peso.
Cement volumes fell by 6.3% to 1.28 million tons due to weak July and August sales caused by heavy rains, while concrete volumes dropped by 24.9%. The company's adjusted EBITDA margin improved to 24.9%, driven by higher prices despite higher costs. The quarter saw a US$150 million local market note issue to refinance short-term debts.
Loma Negra's CEO, Sergio Faifman, noted better weather in September as an encouraging sign for the future.
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