Cemex reverses losses in Q3; forecasts decline in its EBITDA this year

The Mexican cement Cemexone of the largest in the world, said this Thursday that it obtained a net profit in the third quarter, reversing the losses of the same period of the previous year, amid a general increase in its prices to combat the inflation.

Cemex, with operations in the Americas, Europe, Africa, Asia and the Middle East, reported a net profit of 494 million dollars compared to a loss of 376 million dollars in the same period of 2021.

Quarterly revenue for the firm, based in the northern city of Monterrey, rose 7% year-on-year to 3,956 million dollars, boosted by higher prices in local currency in all its markets, although in comparable terms they increased 13 percent.

Its CEO, Fernando González, said price increases had allowed the firm to offset inflationary costs, but persistently high inflation and supply chain complications had slowed its ability to recover margins.

We are fully committed to recovering the margin and will continue our efforts in the fourth quarter, as well as in 2023,” the executive said in a statement accompanying the quarterly report.

The company’s EBITDA decreased in the period by 10%, to 649 million dollars, or a decline of 6% in comparable terms.

Cemex, which will hold a call with analysts later to discuss the results, estimated an EBITDA for this year of 2.7 billion dollars, about 5% less than that registered in all of 2021, and projected a low-single-digit decline for its consolidated cement sales volumes.

Instead, it raised its fixed asset investment forecasts to $1.35 billion from a previous estimate of $1.3 billion.