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: