Loma Negra 2Q19

Loma Negra: A lower cement demand and expectations of less investment in public works affect results.

Loma Negra: una menor demanda de cemento y las expectativas de menor inversión en obra pública afectan los resultados

Amidst an adverse macroeconomic situation (see Annexe1), to which political uncertainty is added (see Annexe 1), this quarter´s Loma Negra´s revenues dropped 2.2% in real terms y/y. This is in line with our projections which contemplated the recession to last until the beginning of third quarter. On the other hand, the results of the primary elections (PASO) favourable to the opposition, which were not anticipated by the markets, plummeted the stock value due to the abrupt change in expectations, affecting particularly this sector so dependent on an economic policy which prioritizes Public Works, like the Macri administration did.

 

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