July 25, 2019 / 11:03 AM / 6 months ago

CORRECTED-UPDATE 2-Mexico's Cemex quarterly sales dip on lower volumes in key markets

(Corrects title for Cemex executive Jaime Muguiro to president in third paragraph; earlier story erroneously said he was chief executive)

July 25 (Reuters) - Mexican cement producer Cemex SAB de CV CMXCPO.MX on Thursday posted a 3% fall in quarterly sales, hurt by lower volumes in key markets such as Mexico.

Consolidated ready-mix and aggregates volumes fell 5% and 6% in the second quarter.

Jaime Muguiro, Cemex’s president of South America, Central America and the Caribbean, said cement demand trends remained positive in Colombia, but it was not enough to offset increases in coal, electricity and distribution costs in Colombia, and weaker markets across Central America.

In Cemex’s home market of Mexico, net sales declined by 13% from a year earlier. Cemex said the country’s infrastructure market has been influenced by “the termination of important projects last year and a slow start in the execution of this year’s budget.”

Net sales inched up by 4% in the United States on strong demand for infrastructure, driven by spending on roads in certain states.

Monterrey-based Cemex, which operates in more than 50 countries, has been waging a campaign to cut costs and divest to regain its investment-grade rating.

In May, the company signed a final agreement to divest assets in Germany, saying it would use the proceeds for debt reduction and general corporate purchases.

The company’s controlling interest net income fell 58.7% to $155 million in the second quarter from $376 million a year earlier.

Total net sales fell to $3.5 billion. (Reporting by Sanjana Shivdas in Bengaluru; additional reporting by Julia Love in Mexico City; Editing by Maju Samuel and Bernadette Baum)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below