Cemex’s Q2 net profit falls on weaker Mexican peso

By Anthony Harrup

MEXICO CITY — Building materials company Cemex said its net profit fell in the second quarter due to currency losses from a weakening Mexican peso. Revenue was flat, reflecting higher prices in all markets.

Monterrey, Mexico-based Cemex reported net income of $230 million for the April-June quarter, down 15% from $272 million in the same period a year earlier. Earnings were equal to 17 cents per American depositary share.

Sales were virtually unchanged at $4.49 billion, with higher prices offsetting lower volumes. Volumes rose in Mexico, where “infrastructure and nearshoring, with particular strength in the north and southeast, continued to be key growth drivers,” Cemex said.

In the U.S., unfavorable weather conditions, a weakening housing sector and competition in some markets contributed to lower volumes.

Consolidated cement volume remained unchanged at 12.4 million metric tonnes, while ready-mix concrete volume fell 9% to 11.3 million cubic metres and aggregate volume decreased 3% to 35.4 million metric tonnes.

Earnings before interest, taxes, depreciation and amortization, a measure of profitability, rose 2% from a year earlier to $965 million, helped by higher prices, lower cost inflation and investment.

Write to Anthony Harrup at [email protected]

(END) Dow Jones Newswires

July 25, 2024, 08:36 ET (12:36 GMT)