Puerto Rican Cement Company Reports StrongConstruction Activity in 1999 Third Quarter.

SAN JUAN, Puerto Rico--(BUSINESS WIRE)--Oct. 27, 1999--

Puerto Rican Cement Company, Inc. (NYSE:PRN) today announced third-quarter 1999 earnings of $2,559,000 or $0.48 per share, versus $2,419,000, or $0.45 per share, for the comparable 1998 period.

For the nine-month 1999 period,

the Company recorded net income of $10,838,000, or $2.05 per share, versus $9,354,000, or $1.73 per share for an 18% improvement over the comparable 1998 period. Income before tax of $15,284,000 increased by 25% over the comparative nine-month figure of $12,188,000 for 1998. The 1998 figure included $886,000 in earnings from the sale of investments, while the 1999 results are mostly from operations.

Consolidated net sales increased to $43,444,000 for the 1999 third quarter from $36,550,000 in the same period in 1998. Record construction activity has increased sales of all products associated with this sector. Cement sales for the quarter increased to 320,000 tons, 27% over the 251,000 tons sold in the 1998 third quarter. Ready-mixed concrete sales also increased by 22% in the third quarter compared with the same quarter in 1998.

Heightened construction activity has increased demand for aggregates on the Island. Scarcity of these materials resulted in higher aggregate costs for the ready-mixed concrete business. These costs affected consolidated comparative gross margins in the third quarter of 1999. Gross margins for the third quarter in 1999 were reported at 23% compared with 28% for the 1998 third quarter. Gross margin in the cement business also decreased as a result of a small decrease in production of clinker.

Selling, general and administrative expenses during the third quarter in 1999 as a percent of sales amounted to 14% compared with 16% in the same quarter in 1998.

Results for the first nine months of 1999 benefited from higher sales volume both in the cement and ready-mixed concrete operations. Cement sales increased by 27% over the comparable nine-month period while ready-mixed concrete sales increased by 25% over the same period. Year-to-date cement plant production also increased by 7% in clinker and 26% in cement. The gross margin for the first nine months of 1999 remained at 28% compared with the gross margin for the 1998 nine-month period.

Miguel A. Nazario, President and Chief Executive Officer, commented:

"Construction activity continues at a very strong pace this year with a consequent increase in local cement consumption for the first nine months of the year. Moreover, our cement operation increased its market share over the nine-month period in 1999 as compared with the same period in 1998.

"Results over the nine-month period continue to be very optimistic with earnings before income tax and depreciation reaching $25,775,000 in 1999 versus $22,131,000 in 1998 for a 16% increase over the prior year.

"Ready-mixed concrete sales volume is up by 25% in the 1999 nine-month period. In view of the impact aggregates have on ready-mixed operations, management has placed greater urgency on getting our aggregate production up and running. We are moving as swiftly as possible to make this operational."

Puerto Rican Cement Inc. produces cement and related products, including Portland Gray cement and hydrated lime, concrete, multiwall paper bags, polypropylene bags, and engages in realty operations. -0-

                   Puerto Rican Cement Company, Inc.

                   Consolidated Statement of Income
                            (Unaudited)

                            Three months ended      Nine-months ended
                               September 30,         September 30,

                          1999         1998        1999         1998
----------------------------------------------------------------------
(In Thousands, except share data)

Net sales           $    43,417  $    36,525  $   136,109  $  112,318
Revenue from real
 estate operations           27           25           79          75
----------------------------------------------------------------------
                         43,444       36,550      136,188     112,393
Cost of sales            33,418       26,455       98,296      81,357
----------------------------------------------------------------------
Gross margin             10,026       10,095       37,892      31,036
Selling, general &
 administrative
 expenses                 6,170        5,925       20,479      17,719
----------------------------------------------------------------------
Income from
 operations               3,856        4,170       17,413      13,317
----------------------------------------------------------------------
Other (credits)
 charges:
  Interest and
   financial
   charges                1,337        1,489        4,417       3,857
  Interest income          (860)        (842)      (2,692)     (2,502)
Other (income)
   expenses                (188)         220          404        (226)
----------------------------------------------------------------------
 Total other
  (credits) charges         289          867        2,129       1,129
----------------------------------------------------------------------
Income before
 income tax               3,567        3,303       15,284      12,188
Provision for
 income tax               1,008          884        4,446       2,834
----------------------------------------------------------------------
Net income          $     2,559  $     2,419  $    10,838  $    9,354
======================================================================
Net income per
 share              $      0.48  $      0.45  $      2.05  $     1.73
======================================================================
Average common
 shares outstanding   5,293,385    5,396,963    5,379,074   5,429,407
======================================================================