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Take physic, pomp

That weak Bolivian economy again

(H/T to reader JR)

On this link you’ll find the second quarter results of GCC, the Mexican cement company that has the biggest market share in Bolivia. It also does business in the USA and Mexico. So let’s check the scoreboard to find out how GCC has been doing.
NET SALES (millions of dollars)
2Q 09 2Q 08 2Q 09 vs
2Q 08
6M 09 6M 08 6M 09 vs
6M 08
Consolidated 175.6 217.8 -19.4% 306.9 369.6 -17.0%
United States
102.9
123.0
-16.3%

165.3
199.2
-17.0%
Mexico
46.2
75.0
-38.4%

89.5
133.5
-33.0%
Bolivia 26.5 19.8 33.8% 52.1 36.9 41.2%
Yes, that does say what you think it says. In dollar terms in the second quarter, sales are down 16.3% in dollar terms in the United States of America. Sales are down 38.4% in Mexico. But sales are up 33.8% in Bolivia. And if we use the Mexican peso (the currency that GCC reports) sales were up 76%, due to the fact that the Bolivian currency is strong…and that’s due to the fact that the whole freakin’ economy is whupping the rest of South America’s tush bigtime. Here are the reasons for the sales figures as given by GCC:

FINANCIAL RESULTS

Net Sales in the second quarter of 2009 rose 3.6% with respect to the year ago period, totaling $2,358.6 million pesos. This was the result of a 6.4% increase in the United States and 76.0% in Bolivia.

In the United States, sales in pesos rose 6.4% compared to the second quarter of 2008 as a result of a more favorable pricing environment in concrete and the depreciation of the peso against the dollar. There was a decline in the residential and public infrastructure sectors, and a slight improvement in the commercial sector.

In Mexico, sales totaled $616.0 million pesos in the second quarter of 2009, a lower figure than in the same quarter of last year. Public infrastructure showed some strengthening, while activity in the residential and commercial sectors declined. The pricing environment in cement and concrete was more favorable.

GCC’s proportional sales in Bolivia rose 76.0% during the second quarter of 2009 compared to the year ago period. This strong growth was due to greater demand in the DIY and commercial-industrial sectors, as well as the depreciation of the peso against the Bolivian peso.

So the next time somebody starts on about that bad economy in Bolivia, tell ’em to STFU, yeah?

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