MEXICO CITY--Elementia, S.A.B. de C.V. (BMV: ELEMENT*) (“the Company”, or “Elementia”) announced its financial and operating results for first quarter 2016. Figures in this report have been prepared in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB). Figures are stated in nominal Mexican pesos ($) and all comparisons are made against the same period of the previous year, unless otherwise specified.
FIRST QUARTER 2016 HIGHLIGHTS
- In line with expectations, double-digit growth was achieved in consolidated EBITDA. For this line item, the Cement Division grew by 32% and the Metals Division rose by 11%, while Building Systems declined by 8%.
- Net sales increased 6% in 1Q16, reaching $4.32 billion.
- Operating income grew 17% in 1Q16, reaching $508 million.
- EBITDA rose 10% in 1Q16, reaching $778 million.
- Elementia adopted a hedging strategy in Mexican pesos on the dollar-denominated debt.
- In the Building Systems Division, the implementation and learning stage in the Central American region was concluded, and the results are encouraging.
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- As of March 11, 2016, Mr. Juan Francisco Sánchez Kramer, who had been serving as Director of Investor Relations, assumed on an interim basis the Chief Financial Officer position.
- In accordance with the Company’s strategy of achieving an exchange rate balance between operations and the Balance Sheet, on March 29, 2016, Elementia carried out its first hedging tranche covering 10% of its senior unsecured notes.
For a full version of this earnings release with financial statements, go to: www.elementia.com in the Investor Relations section
CONFERENCE CALL INFORMATION
Elementia will hold a conference call to discuss its 1Q16 results on Thursday, April 21, 2016 at 12:00am (Mexico) / 1:00pm (ET). To access the call, please dial: From within the US: 1-800-311-9402, International participants: 1-334-323-7224 (Passcode: 35941) and via an audio-only webcast at https://www.webcaster4.com/Webcast/Page/1398/14687. Participants are requested to connect 15 minutes prior to the call. A replay of the webcast will be available at www.elementia.com.
Elementia is the leading building materials company in the region. The Company has grown organically and through mergers and acquisitions to constitute, today, a company with a comprehensive product portfolio of market leading building materials within the construction sector, supplying up to 75% of the materials used to build a typical house. With an extensive distribution network across main construction segments, Elementia is the #1 producer of fibercement in Latin America and #2 in the U.S., one of the top 5 producers of copper brass mill products in the world, and first entrant into the Mexican cement market in 70 years. For more information go to www.elementia.com
The main brands of the Company are: Fortaleza ® / Nacobre ® / Mexalit ® / Eureka ® / Plycem ® / Eternit ® / Duralit ® / Fibraforte ® / Frigocel ® / Allura ® / Maxitile ®
This press release includes declarations relating to, and is subject to, current expectations as factors, including, without limitation, global economic and market conditions, the costs of raw materials and energy, expenses, revenues and earnings of Elementia and its Divisions and that of the relevant markets where its companies operate. These expectations are based on certain preliminary information, internal estimates, expectations and assumptions of management. All of these things are subject to a series of risks and uncertainties in the projection of future conditions, regulations in the relevant market, products and fields of industry issued by the respective authorities, as well as events and results. Real results could differ significantly from the expectations expressed in prospective declarations. Elementia may choose to update these prospects, but specifically rejects any responsibility to do so, except as required by law.