Cemex 2Q Net Profit Falls on Weaker Mexican Peso

By Anthony Harrup

MEXICO CITY--Building materials company Cemex said its net profit fell in the second quarter on foreign exchange losses attributed to a weaker Mexican peso, while revenue was flat, supported by higher prices across markets.

Monterrey, Mexico-based Cemex posted net profit of $230 million for the April-June quarter, down 15% from $272 million in the year-earlier period. Profit was equivalent to 17 cents an American depositary share.

Sales were practically unchanged at $4.49 billion, with higher prices offsetting lower volume. Sales volume increased in Mexico, where "infrastructure and nearshoring, with particular strength in the north and southeast, continued to be the principal growth drivers," Cemex said.

In the U.S., adverse weather, a weakening residential sector and competition in certain markets contributed to a volume decline.

Consolidated cement volume was flat at 12.4 million metric tons, while ready mix concrete fell 9% to 11.3 million cubic meters and aggregates volume was down 3% at 35.4 million metric tons.

Earnings before interest, taxes, depreciation and amortization, a measure of profitability, increased 2% from a year- earlier to $965 million, supported by higher prices, easing cost inflation and investments.

Write to Anthony Harrup at anthony.harrup@wsj.com

(END) Dow Jones Newswires

July 25, 2024 08:36 ET (12:36 GMT)

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