Mexico’s Cemex , the world’s third largest cement maker, said on Tuesday it expects a 19 per cent increase in first quarter earnings before interest, taxes, depreciation and amortization (EBITDA). In a statement providing earnings guidance, Cemex said it expects EBITDA to come in at about US$535m while operating profit is expected to reach US$380m on revenue of more than US$1.7bn. Cemex last year reported first quarter EBITDA of US$450m and an operating profit of US$301m on sales of US$1.597bn.
"The increase in EBITDA and operating income is due to stronger volumes in our major markets and to lower operating costs and administrative expenses achieved as a result of recent investments and expense containment efforts," Cemex said in a statement. "The improved economic climate in our major markets and the significant contribution to our operating results from our cost reduction efforts under taken last year, puts us on track to a strong first quarter performance," Chief Financial Officer Rodrigo Trevino said.