Cemex registered a 14 per cent gain in first-quarter net profit as the company met its sales goals noting that net profit rose to US$505m from US$444m in the year-earlier period. Consolidated sales jumped 52 per cent to US$3.9bn and the company reported a 29 per cent increase in earnings before interest, taxes, depreciation and amortization. Cemex’s first quarter earnings were also in line with analyst expectations, which ranged between US$460m and US$510m. Cemex also lowered its net debt by US$202m in the quarter to US$8.5bn, or 2.3 times 12-months’ EBITDA.
"The marked improvement in our EBITDA for the quarter was primarily the result of the consolidation of the RMC operations as well as higher domestic volumes in all of the core markets in our portfolio," said Hector Medina, executive vice president of planning and finance, in a release.
Cemex said its consolidated cement volume increased 21 per cent to 19.9Mt, while consolidated ready-mix volume grew 70 per cent to 16.9 million cubic meters. The company’s consolidated aggregates volume increased 20 per cent to 23Mt
In Mexico, government infrastructure spending continued to be a main source of demand. Domestic volumes rose 10 per cent in cement and 25 per cent in ready mix. Volumes also rose in other major markets, including the US and Spain. (Abstracted from Dow Jones report).