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)

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