PR Cement Annual Report 1964 Part 1

7/28/2019 PR Cement Annual Report 1964 Part 1

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P U E R T O R I C A N1 9 6 4 ANNUALREPORTC E M E N T C O M P A N Y i


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C O V E R"El Merendero Bacardi "When Barcardi International expandedits operations in San Juan,a most striking concrete open-air meetinghall wa s built. Th e cement usedfo r this parabolic hyperboloidstructure was supplied byou r Sa n Juan Cement Plant.

Massive concrete buildings in theCondado Area, one of the ever-growingsections in the city of Sa n Juan, frontingthe Caribbean.

D I R E C T O R SJose A. Ferr6Co-ChairmanLuis A. FerreCo-ChairmanHerman FerreVice-ChairmanAntonio Luis FerreManuel A. MayoralChairman of Finance CommitteeRafael Carrion, Jr.Maurice A. FerreAntonio H. FerreRoberto de Jesus ToroGuillermo RodriguezAngel A. SanzNicanor Ferrer

O F F I C E R SAntonio Luis FerrePresidentOscar M. GirodVice-PresidentHoracio SubiraVice-PresidentManuel A. MayoralTreasurerJorge Bartolomei, Esq.SecretaryAndres BermiidezComptroller an d Assistant Secretary

Transfer AgentThe Chase Manhattan BankNe w York, N.Y. and San Juan, Puerto Rico

RegistrarFirst National City BankNe w York, N.Y. and San Juan, Puerto Rico

Executive OfficesPonce, Puerto Rico


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F I N A N C I A L H I G H L I G H T S1960

NET SALESINCOME BEFORE TAXESNET INCOME AFTER TAXES

$16,116,0003,093,0002,038,000

1961$18,110,000

3,782,00*02,462,000

1962$20,265,000

4,897,0003,139,000

1963$22,222,000

5,317,0003,415,000

1964$25,634,000

6,189,0003,951,000


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Antonio Luis Ferre,President

To our Stockholders:Your Company experienced a record year in 1964.Earnings w ere 3.951 m illion dollars, or $1.98 pershare, a 15.7% increase over earnings of 3.415 milliondollars and $1.71 per share during 1963.Sales amounted to 25.634 million dollars during1964, 15.4% higher than sales during 1963.At the end of this outstanding year, the Companyfinds itself in a strong financial condition, with a cur-rent assets to current liabilities ratio of 5.7 to 1. Thisposition permits the Puerto Rican Cement Company,Inc. to be well prepared both for expansion and forfuture contingencies.

One of the main reasons for our successful per-formance was the vigorous growth of the Puerto Ricaneconomy as a whole. During the fiscal year that endedon June 30,1964, Commonwea l th net income increasedby over 10% to 2.096 billion dollars. This is a remark-able rate of growth, and represents the fourth con-secutive year in which Puerto Rico's net incomeincreased by at least 10%.Another factor in our successful year was thedynamic performance of the construct ion industry inPuerto Rico. In the fiscal year ended June 1964, con-struction on the Island increased by over 16%, to arecord level of 376 million dollars. The vitality of theconstruction industry manifested itself in record ex-penditures for commercial and industrial buildings,fo r public works and for housing.A third element which has contributed to our goodperformance in 1964 is the efficiency achieved in themanufac tu r ing an d distr ibution of our products, whichhas kept our Company keenly competitive. In order tokeep this competitive impetus, the Company invested4.596 million dollars this year in modernizing andimproving its facilities. Among th e major moderniza-tion an d expansion programs carried out were th e

enlargement and modernization of Kiln No. 1 at thePonce Plant, as well as the in trod uctio n of labor savingmachinery and of new electronic instruments. Toreduce costs and provide better service to customers,important expenditures were also made for new bulkcement carriers and silos.The new Lime Plant performed excellently in itsfirst full year of operation, obtaining a major portionof the ma rket. The modern m ultiwall Bag Plant alsomade a good showing, establishing a record perform-ance during 1964.The projected construct ion of a white cement planthas been postponed temporarily because foreign whitecement at lower prices makes this venture unattractive,at least for the time being.At this wri t ing, ou r Board of Directors ha s authorizedan expansion program of 2.5 million barrels, which willbring our total capacity to 10.5 million barrels by theend of 1966. This move was decided upon in order tomeet the anticipated demand of cement in the rapidlygrowing Puerto Rican economy. Total cost of theexpansion is preliminarily estimated at 12 milliondollars and will be largely financed from internallygenerated funds.In general, the economic outlook of Puerto Ricolooks very healthy for 1965. The Puerto Rico PlanningBoard has forecasted another 10% increase in netincome for the fiscal year ending June 30, 1965.Barring an unexpected recession on the mainland,1965 would seem to be a favorable year for theCommonwealth and for your Company as well.In closing, I wish to take this opportunity to express,on behalf of the Board of Directors and Managementand on my own behalf, our sincere appreciation to ourstockholders, our employees and our customers fortheir cooperation an d support which made possiblethe achievements of this year.

Antonio Luis FerrePresident


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Th e ne w headquarters in Puerto Ricoof one of the leading bankinginstitutions on the Island,recently dedicated, shows atasteful use of the uniqueconstruction qualities of prestressed concrete.

THE CONTINUING S T R E N G T HOF THE PU E RT O RICAN ECONOMYDuring 1964 the C omp any operated within theenvironment of economic progress of the Puerto

Rican economy. The extraordinary vitality of theCommonwealth economy was once again demon-strated in the course of the fiscal year endingJune 30, 1964. It was the fourth consecutiveyear of vigorous growth.During this period, net income grew by over10% to 2.0% billion dollars.The strong impetus exerted by manufacturingwa s a principal factor in the progress of theeconomy during 1964. As new factories con-tinued to be established, industrial profits an dwages increased. Net income from manufacturingadvanced by 10.6%, to 486 million dollars.Tourism experienced another year of vibrantgrowth as new hotels opened fo r business an dPuerto Rico continued to be a popular vacationarea. Net income from tourism rose to 96.4million dollars in 1964, an 18% upswing thatprovided strong support to the economy. Approxi-mately 517,000 persons visited our lovely Islandin the 1964 fiscal year.The general climate of the Puerto Ricaneconomy is one of confidence. W ith a p roven andsteadfast government , an alert business commu-nity, and a policy of economic expansion, it wouldseem that the eco nom y of Puerto Rico shouldcont inue its progress into 1965 and beyond.

T H E S T R E N G T H OFTHE CONSTRUCTION INDUSTRY

W ithin this pictures of solid economic growth,the construction industry, of which we are anintegral part, was a major contributor to progressand, at the same time, a major beneficiary ofsuch progress.

Modern housing developments an d office build-ings, as well as shopping centers for a new middleclass, made it possible for the constructionindustry to achieve a record year in 1964.Total construction activity increased by over

16% during fiscal 1964 to reach 376 milliondollars, compared to 323 million dollars in 1963.Construction for housing w as the backbone of theindu stry. A s a new middle class develops, modernhousing is one of its primary concerns in theeffort to improve its standard of living. Totalexpenditures for private housing increased to140 million dollars in fiscal year 1963-64, a22% rise.

Commercial and industrial construction alsoprovided a strong thrust. This segment of theindustry has increased sharply to a level of80 million dollars in fiscal 1964.

In summary, the construction industry of theCommonwealth showed marked strength andvitality in 1964 and has, indeed, been a keyfactor in our developing economy.


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SELECTED E C O N O M I C I N D E X E S O F P UER TO RICO V."":";-Xv."-FISCAL YEARS 1959-1964 \*'x''vX-( i n M i l l i o n D o l l a r s )

954 prices)

54 pr ices)t

19591,496.11,391.51,236.61,162.2

538.6506.2301.5

91.347.0

19601,690.51,534.41,398.01,275.5

601.5549.0358.8113.0

58.1

19611,851.71,621.21,545.41,379.8

654.0584.0399.6129.3

55.7

19622,035.31,721.21,715.61,508.9

711.0625.3458.9144.167.9

19632,293.21,868.11,906.61,636.6

772.8663.4505.5163.8

81.9

19642,531.52,026.72,096.71,782.9

830.4706.1557.0180.296.4

Gross National ProductGross National Product (a tNet IncomeNet Income (at 1954 prices )Net Income Per CapitaNet Income Per Capita (at 1954 prices )Gross Manufacturing ProductGross Construction ProductTourist ExpendituresSource: Puerto Rico Planning Board

The simplici ty of "El Monte," a towering all-concrete apartment building, winner of several design prizes in Puerto Ricoand abroad, enhances the new subdivisions flourishing in Hato Rey, center of much of San Juan's current development.

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S A L E SThis year 1964 was a new record year foryour Company.

Sales amounted to 25.634 million dollars, anincrease of 15.4% over the 1963 figure of 22.222million dollars.Local sales we re 22.006 million dollars in 1964,compared to 17.893 million dollars in 1963. Thisrepresents an increase of 23%.Th e Company supplied approximately 94% ofPuerto Rico's cement requirements during 1964.

E A R N I N G SYour Company also established a new recordfor earnings during the year 1964. Ne t Incomebefore taxes was 6.189 millio n dollars, an increaseof 16.4% over the 5.317 million dollars recordedin 1963. Net Income after taxes amounted to3.951 million dollars, an increase of 15.7% overthe 3.415 million dollars after taxes ea rned in 1963.In 1964, net income per share after taxes was$1.98 on 2,000,000 shares outstanding as com-pared with $1.71 per share in 1963, computed onthe same number of shares. This constitutes anincrease of 15.8%.

Th e versatility of modern concrete techniques proves thatcement can be adapted to almost an y type of structure.This church in the heart of San Juan metropolitan area,u-ith i ts unique belltower, is a fine example.Th e Ashford Medical Center, a physician's o f f i c e building constructedby tenants pooling resources in a cooperative project. Cement wasused to achieve a solid structure and a mo st beautiful exterior.

structures and designs need not appear massive inKze as shown by the soft an d delicate pattern of this su ndeflector grill at the San Juan Nursing School Building.-

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Shapes and forms in concrete can be as classic as yesterday and as m odern as tomo rrow,or a perfect balance of both, as in these very harmonious exterior columns.

. ECONOMIC HIGHLIGHTS

^Hf&*Fiscal Yea r

1959

1960

1961

19621963

1964

OF THE PUERTO RICAN CONSTRUCT

( in Mi l l ion Dollars)

G r o s s Product Contributed91.3

113.0

129.3144.1

163.8

180.2

Total Investment163.0

227.0

252.6

306.7

322.8

376.1

Source: Puerto Rico Planning Board

PR Cement Annual Report 1964 Part 1

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Transcript of PR Cement Annual Report 1964 Part 1