Mexico's Cemex Reports Lower 3Q Net Profit, Jump in Ebitda

By Anthony Harrup

MEXICO CITY--Mexican cement maker Cemex posted double-digit sales and operating profit growth in the third quarter, boosted by higher prices and easing cost inflation, while net profit fell from a year earlier.

Cemex said net profit of $126 million was down 75% from the year-earlier quarter, when profit was boosted by asset sales. Higher taxes in the third quarter of this year also contributed to the decline.

Sales rose 16% to $4.57 billion, thanks to higher prices. Cement sales by volume fell 4% to 13.3 million metric tons, and ready mix concrete volume was down 4% at 12.2 million cubic meters. Aggregates volume was flat at 36.2 million metric tons.

The Monterrey-based building materials company posted earnings before interest, taxes, depreciation and amortization of $910 million for the July through September period, 40% more than in the year-earlier quarter.

Cemex attributed the improvement in Ebitda margin to its pricing strategy, the contribution of investments, and slowing cost inflation.

The company expects Ebitda to exceed $3.3 billion in all of 2023, up from its previous forecast of around $3.25 billion. Capital expenditures are projected at $1.35 billion, $100 million more than previously estimated.

Write to Anthony Harrup at anthony.harrup@wsj.com

(END) Dow Jones Newswires

October 26, 2023 09:45 ET (13:45 GMT)

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