Latest news with #cement
Yahoo
5 days ago
- Business
- Yahoo
Mexico's Cemex posts double-digit profit rise as restructuring kicks in
By Kylie Madry MEXICO CITY (Reuters) -Mexican cement producer Cemex posted a double-digit increase in second-quarter profit on Thursday, despite a dip in sales, as its new management rolled out a restructuring program that included thousands of layoffs. Cemex's profit climbed 38% to $318 million, a bright spot as sales sagged 5% to $4.13 billion, and core earnings measured by EBITDA dropped 11% to $823 million. All figures were largely in line with estimates from analysts polled by LSEG. The cement producer, one of the world's largest, saw fewer volumes in two of its top markets, Mexico and the United States. In Mexico, record rainfall and a slowdown in public infrastructure projects under the new administration weighed on performance. In the U.S., the decline was driven by heavy rains and a subtle residential construction sector. Still, volumes in the Middle East and Africa surged amid new housing and infrastructure projects. The results mark the first quarterly report under CEO Jaime Muguiro, who previously led Cemex's U.S. operations before taking over as group chief. Muguiro, in a statement, detailed progress on Cemex's previously announced cost-saving program, adding "difficult decisions" had been taken in the quarter as headcount would come down further. Cemex's workforce shrank 5% year-over-year to around 43,000 employees in the second quarter. Operating expenses came down 3%, mostly from lower spending in logistics and distribution. Now, the cement and concrete maker expects a $200 million boost to its EBITDA this year from the cost cuts, up from a previously forecast $150 million. For the full year, Cemex expects its EBITDA to remain flat, though it does see potential for the metric to come in slightly higher. By 2027, the spending cuts are expected to total $400 million, Cemex said, with layoffs alone contributing $200 million in annual savings. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Mexico's Cemex posts double-digit profit rise as restructuring kicks in
By Kylie Madry MEXICO CITY (Reuters) -Mexican cement producer Cemex posted a double-digit increase in second-quarter profit on Thursday, despite a dip in sales, as its new management rolled out a restructuring program that included thousands of layoffs. Cemex's profit climbed 38% to $318 million, a bright spot as sales sagged 5% to $4.13 billion, and core earnings measured by EBITDA dropped 11% to $823 million. All figures were largely in line with estimates from analysts polled by LSEG. The cement producer, one of the world's largest, saw fewer volumes in two of its top markets, Mexico and the United States. In Mexico, record rainfall and a slowdown in public infrastructure projects under the new administration weighed on performance. In the U.S., the decline was driven by heavy rains and a subtle residential construction sector. Still, volumes in the Middle East and Africa surged amid new housing and infrastructure projects. The results mark the first quarterly report under CEO Jaime Muguiro, who previously led Cemex's U.S. operations before taking over as group chief. Muguiro, in a statement, detailed progress on Cemex's previously announced cost-saving program, adding "difficult decisions" had been taken in the quarter as headcount would come down further. Cemex's workforce shrank 5% year-over-year to around 43,000 employees in the second quarter. Operating expenses came down 3%, mostly from lower spending in logistics and distribution. Now, the cement and concrete maker expects a $200 million boost to its EBITDA this year from the cost cuts, up from a previously forecast $150 million. For the full year, Cemex expects its EBITDA to remain flat, though it does see potential for the metric to come in slightly higher. By 2027, the spending cuts are expected to total $400 million, Cemex said, with layoffs alone contributing $200 million in annual savings. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
5 days ago
- Business
- Reuters
Mexico's Cemex posts double-digit profit rise as restructuring kicks in
MEXICO CITY, July 24 (Reuters) - Mexican cement producer Cemex ( opens new tab posted a double-digit increase in second-quarter profit on Thursday, despite a dip in sales, as its new management rolled out a restructuring program that included thousands of layoffs. Cemex's profit climbed 38% to $318 million, a bright spot as sales sagged 5% to $4.13 billion, and core earnings measured by EBITDA dropped 11% to $823 million. All figures were largely in line with estimates from analysts polled by LSEG. The cement producer, one of the world's largest, saw fewer volumes in two of its top markets, Mexico and the United States. In Mexico, record rainfall and a slowdown in public infrastructure projects under the new administration weighed on performance. In the U.S., the decline was driven by heavy rains and a subtle residential construction sector. Still, volumes in the Middle East and Africa surged amid new housing and infrastructure projects. The results mark the first quarterly report under CEO Jaime Muguiro, who previously led Cemex's U.S. operations before taking over as group chief. Muguiro, in a statement, detailed progress on Cemex's previously announced cost-saving program, adding "difficult decisions" had been taken in the quarter as headcount would come down further. Cemex's workforce shrank 5% year-over-year to around 43,000 employees in the second quarter. Operating expenses came down 3%, mostly from lower spending in logistics and distribution. Now, the cement and concrete maker expects a $200 million boost to its EBITDA this year from the cost cuts, up from a previously forecast $150 million. For the full year, Cemex expects its EBITDA to remain flat, though it does see potential for the metric to come in slightly higher. By 2027, the spending cuts are expected to total $400 million, Cemex said, with layoffs alone contributing $200 million in annual savings.
Bloomberg
5 days ago
- Business
- Bloomberg
Cemex Net Income Beats Estimates on Improved European Demand
Cemex SAB's earnings surpassed expectations as the Mexican cement maker benefited from a rebound in Europe that cushioned a weaker performance in the US. Net income reached $318 million in the second quarter, Cemex said in a statement Thursday, topping the $245.7 million estimate of analysts surveyed by Bloomberg. A profit gauge known as operating Ebitda was in line with expectations.
Reuters
5 days ago
- Business
- Reuters
Indian cement firm ACC's profit rises on strong volumes, prices
July 24 (Reuters) - Indian cement maker ACC ( opens new tab reported a 5% rise in first-quarter profit on Thursday, helped by strong volumes and higher prices of the construction material. Standalone profit after tax - which excludes the company's non-core realty and infrastructure subsidiaries - rose to 3.85 billion rupees ($44.6 million) in the three months ended June, from 3.66 billion rupees, the Adani Group firm said. April-June is typically a seasonally weak period for cement makers, as summer heatwaves followed by monsoon rains hinder the pace of construction and dent demand of the raw material. However, ACC's sales volumes have been insulated from seasonal volatility, thanks to the string of cement deals its billionaire-owner Gautam Adani has inked to challenge rival UltraTech Cement's ( opens new tab polestar position in the sector, analysts have said. ACC's volumes rose 12% in the reported quarter, on the upper side of the 5.8%-12% growth range projected by atleast four brokerages. Cement prices also lent support, rising about 2% on-year on average in the quarter, extending its steady recovery so far this year after last year's slump, according to brokerage Ambit Capital. ACC's revenues rose nearly 18% on-year to 60.15 billion rupees in the reported quarter, while costs grew over 16% to 55.61 billion rupees. Higher prices also helped bigger rival UltraTech top earnings estimates in the reported quarter. Meanwhile, fellow peer Dalmia Bharat's ( opens new tab consolidated profits jumped, opens new tab mainly on cost control measures as its revenues stagnated on-year. Ambuja Cements ( opens new tab, also Adani-owned, is set to report results next week. ($1 = 86.3540 Indian rupees)
