Cemargos Rallies as Concrete Boosts Second Quarter: Bogota MoverChristine Jenkins
Cementos Argos SA, Colombia’s largest cement maker, rose for the first time in three days after reporting a 14 percent increase in revenue as concrete sales jumped.
The common shares climbed 0.9 percent to 8,650 pesos at 1:12 p.m. in Bogota after gaining as much as 1.3 percent. The Colcap index increased 1 percent. Medellin-based Cemargos’s shares dropped 3.2 percent over the previous two trading days.
The company’s concrete volumes jumped 9.3 percent in the second quarter as infrastructure and housing projects began in Colombia, according to an e-mailed presentation yesterday. Cement volumes grew 1.8 percent during the same period.
The concrete “ready-mix business saves the day,” Banco Santander SA analyst Andres Soto wrote in an e-mailed report. “We have a positive outlook for the ready-mix business in Colombia due to the company’s involvement in the government’s housing programs.” Santander has a hold recommendation.
Cemargos said earnings before interest, taxes, depreciation and amortization in the second quarter jumped 32 percent from a year earlier to 244 billion pesos ($129 million), exceeding Santander’s estimates by 6 percent.