Mexico's Cemex Posts Higher 2Q Profit, Raises Guidance
By Anthony Harrup
MEXICO CITY--Mexican cement and building materials company Cemex registered a modest increase in second-quarter net profit, while posting double-digit growth in sales and operating profit.
Second-quarter net profit was up 2% at $272 million, or 18 cents an American depositary share, as higher financial expenses and taxes partially offset higher operating profit and foreign exchange gains, Cemex said Thursday.
Monterrey-based Cemex reported sales of $4.57 billion for the April-June period, up 13% from the year-earlier quarter, driven largely by higher prices in all regions. Cement sales by volume were down 6% at 13.4 million metric tons, aggregates volume grew 3% to 36.7 million metric tons, and ready-mix concrete sales decreased 5% to 12.4 million cubic meters.
Earnings before interest, taxes, depreciation and amortization, a measure of profitability, rose 34% to a record $961 million. Higher prices, easing cost inflation and rapid expansion of the company's Urbanization Solutions business contributed to the higher Ebitda, Cemex said. Operating profit grew by 51% to $651 million.
Cemex estimates Ebitda for the full year of around $3.25 billion, implying a 21% increase over 2022. Previously, the company had been predicting low single-digit growth. Planned capital expenditures for this year remain at $1.25 billion, including $850 million for maintenance.
Write to Anthony Harrup at anthony.harrup@wsj.com
(END) Dow Jones Newswires
July 27, 2023 10:05 ET (14:05 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.-
What’s Happening In the Markets This Week
-
How Anti-Obesity Drugs Are Innovating the Healthcare Market
-
Why Immigration Has Boosted Job Gains and the Economy
-
What to Invest in During High Inflation
-
Never Mind Market Efficiency: Are the Markets Sensible?
-
Starbucks Stock Could Use a Pick-Me-Up After Big Selloff; Is it a Buy?
-
5 Cheap Stocks to Buy From an Attractive Part of the Market
-
Markets Brief: All Eyes On Inflation
-
8 Stock Picks in the Apparel Industry
-
Baidu Earnings: Advertising Weakness Offset by Continued Growth In Cloud Business
-
Going Into Earnings, Is Target Stock a Buy, a Sell, or Fairly Valued?
-
Walmart Earnings: Low Prices and Strong Digital Presence Drive Market Share Gains
-
After Earnings and a Big Selloff, Is Shopify Stock a Buy, a Sell, or Fairly Valued?
-
Cisco Earnings: Positive Guidance and Splunk Inclusion Align With Our Long-Term Thesis
-
3 Warren Buffett Stocks to Buy After Berkshire Hathaway’s Just-Released 13F Filing
-
Going Into Earnings, Is Nvidia Stock a Buy, a Sell, or Fairly Valued?