Cemex reports quarterly loss

Cemex reports quarterly loss
27 January 2010

Cemex posted a fourth-quarter loss because of lower cement demand as a recovery in the U.S. economy failed to extend to the construction industry.

Cemex’s loss narrowed to $209.5 million, or 22 cents per U.S. share, from a loss of $706.8 million, or 91 cents, a year earlier, the Monterrey, Mexico-based company said today in a statement. Sales dropped 17 percent to $3.44 billion.

EBITDA fell 37 percent from a year earlier to $473.7 million.

The loss was caused in part by a $446 million writedown from the sale of Cemex’s Australian assets. The company reported net income from continuing operations of $265.1 million. A year ago, the company recorded a loss of $911 million from financial instruments, mainly currency and equity derivatives.

Net debt dropped to $15 billion from $18 billion a year ago and $17 billion in the previous quarter.

Sales in the U.S. declined 39 per cent to $602 million as cement volume fell 25 per cent and concrete dropped 30 percent. For the year, cement volumes fell 32 percent and concrete 38 percent. In Mexico, sales dropped 12 percent to $722.7 million. Cement volumes fell 10 percent and concrete dropped 28 per cent. For the year, cement volume fell four per cent and concrete declined 14 per cent.

In Spain, sales fell 21 per cent to $194.5 million. Cement volumes fell 23 per cent and concrete decreased 33 percent. Sales in the U.K. dropped 10 per cent to $284.9 million as cement volumes fell 14 percent and concrete decreased 23 per cent.
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