Mexico's Cemex Reports Lower 3Q Net Profit, Jump in Ebitda
By Anthony Harrup
MEXICO CITY--Mexican cement maker Cemex posted double-digit sales and operating profit growth in the third quarter, boosted by higher prices and easing cost inflation, while net profit fell from a year earlier.
Cemex said net profit of $126 million was down 75% from the year-earlier quarter, when profit was boosted by asset sales. Higher taxes in the third quarter of this year also contributed to the decline.
Sales rose 16% to $4.57 billion, thanks to higher prices. Cement sales by volume fell 4% to 13.3 million metric tons, and ready mix concrete volume was down 4% at 12.2 million cubic meters. Aggregates volume was flat at 36.2 million metric tons.
The Monterrey-based building materials company posted earnings before interest, taxes, depreciation and amortization of $910 million for the July through September period, 40% more than in the year-earlier quarter.
Cemex attributed the improvement in Ebitda margin to its pricing strategy, the contribution of investments, and slowing cost inflation.
The company expects Ebitda to exceed $3.3 billion in all of 2023, up from its previous forecast of around $3.25 billion. Capital expenditures are projected at $1.35 billion, $100 million more than previously estimated.
Write to Anthony Harrup at anthony.harrup@wsj.com
(END) Dow Jones Newswires
October 26, 2023 09:45 ET (13:45 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.-
What’s the Difference Between the CPI and PCE Indexes?
-
Micron Earnings: Great Guidance but Stock Now Looks Fairly Valued
-
August PCE Report Forecasts Show More Good News on Inflation
-
AI Stocks May Be Down, but Don’t Count Them Out
-
4 Stocks to Buy as the Fed Cuts Interest Rates
-
Markets Brief: The Uncertain Path to Neutral Interest Rates
-
What’s Happening in the Markets This Week
-
Where Top Stock Fund Managers Are Looking Next After the Fed Rate Cut
-
Our Top Pick for Investing in US Renewable Energy
-
How to Measure a Stock’s Uncertainty
-
How to Determine Whether a Stock Is Cheap, Expensive, or Fairly Valued
-
Why a Company’s Management and Capital Allocation Matter
-
How to Determine What a Stock Is Worth
-
How to Measure a Company’s Competitive Advantage
-
How to Think Like a Stock Analyst
-
How GLP-1 Drugs Like Ozempic Are Boosting Biopharma Stocks